VZCZCXRO3873
RR RUEHIK
DE RUEHVJ #0059/01 0211047
ZNR UUUUU ZZH
R 211047Z JAN 10
FM AMEMBASSY SARAJEVO
TO RUEHC/SECSTATE WASHDC 1262
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHBS/USEU BRUSSELS
RUCPDOC/USDOC WASHDC

UNCLAS SECTION 01 OF 03 SARAJEVO 000059 
 
SIPDIS 
 
STATE FOR EEB/CBA (DENNIS WINSTEAD) AND EUR/SCE 
COMMERCE FOR 4232/ITA/MAC/EUR SILVIA SAVICH 
ZAGREB FOR PAMELA WARD 
 
E.O. 12958: N/A 
TAGS: BEXP KPAO ABUD AMGT BTIO ECON EINV ETRD BK
SUBJECT: BOSNIA: FY10 BFIF PROJECT PROPOSALS 
 
REF: 09 STATE 126674 
 
SARAJEVO 00000059  001.2 OF 003 
 
 
¶1. Post appreciated EEB/CBA's offer of Business Facilitation 
Incentive Fund (BFIF) support.  Per reftel instructions, we 
submit the following proposals in rank priority order.  Our 
responses are keyed to reftel instructions. 
 
RENEWABLE ENERGY SEMINAR, MAY 2009 
----------------------------------- 
 
¶2.  a) Bosnia and Herzegovina (BiH) is a country rich in 
renewable energy resources, particularly hydro and wind 
power.  While BiH traditionally has focused on developing the 
hydropower sector, which in some areas provides up to 60% of 
the energy supply, the country,s wind energy potential has 
remained relatively untapped.  Last year, however,  the 
Herzegovina region -- the area richest in wind power -- began 
to actively attract foreign direct investment in this sector. 
 Since August 2009, several municipalities in Herzegovina 
have awarded concessions to build wind farms, one of which 
was given to an Austrian company.  In October, Germany 
announced a 46 million KM (USD 30 million) loan to develop a 
wind farm in the Podvelezje municipality.  Although Europe, 
particularly Germany and Austria, already holds a traditional 
advantage in BiH,s energy market, there are still 
significant investment opportunities in the nascent wind 
energy sector for U.S. companies. 
 
b) Embassy Sarajevo proposes a three-to-five day traveling 
seminar for interested U.S. companies and an 
Embassy-sponsored speaker/moderator.  This group will travel 
to Sarajevo, Mostar, Livno, and Tomislavgrad to showcase U.S. 
technical and competitive advantages in wind power.  Our 
target audience would include mayors, cantonal and Federation 
ministers of spatial planning, energy and science, interested 
non-governmental organizations, and local businesses.  The 
project has the support of the Ambassador and DCM, and other 
sections in the Embassy, including USAID. 
 
c) Our planning milestones are as follows.  We must identify 
an appropriate expert speaker on renewable energy and wind 
power.  We have several potential candidates, including Steve 
Burns, the Senior Energy Advisor for USAID,s Europe and 
Eurasia Bureau.  Mr. Burns is a well-known expert in the 
field and he has already agreed to participate in our 
program.  We have also reached out to the American Council on 
Renewable Energy for suggestions on an appropriate speaker. 
Secondly, we hope to hold the event in late May or early 
June.  The length of the seminar is negotiable and will 
reflect the time our speaker and business representatives 
have to spend in the region.  However, we propose that the 
group visit a minimum of three cities in Herzegovina in order 
to maximize our exposure.  We must also identify three to 
five companies that would participate in the seminar.  We 
have already received positive feedback on this proposal from 
General Electric,s London representative.  Lastly, we are 
seeking partner funding to supplement BFIF funds, which we 
hope to use to pay a small honorarium to the speaker or 
offset representational costs.  Embassy Sarajevo's Office of 
Public Affairs has agreed to provide $1,000.00 for the 
program, and we also may be able to negotiate a cost-share 
agreement with USAID to cover some travel costs if we choose 
Mr. Burns as our speaker. 
 
d) Estimated Costs for the speaker/moderator are as follows: 
Transportation costs for speaker from U.S.: $1500 
Seven days per diem (two half-day travel days): $1400 
Total: $2900 
(Honorarium: $1000 - Cost-sharing; Representational Fees: TBD 
- Cost-sharing) 
 
e) Points of Contact: 
 
Econ/ESTH Officer Shelbie Legg 
e-mail: LeggSC@state.gov 
tel: 387-33-445-700 ext. 2433 
fax: 387-33-659-722 
 
Econ/Commercial Officer Tracey Newell 
e-mail: NewellTB@state.gov 
tel: 387-33-445-700 ext. 2040 
fax: 387-33-659-722 
 
PARTNER POST EXCHANGES - ZAGREB/BIH 
----------------------------------- 
 
¶3.  a) In light of our continuing efforts to promote 
 
SARAJEVO 00000059  002.2 OF 003 
 
 
commercial diplomacy in BiH and to strengthen the partner 
post program between the U.S. Department of State and the 
U.S. Department of Commerce, Embassy Sarajevo proposes a 
joint exchange/training program with our partner post, the 
U.S. Commercial Service in Zagreb, Croatia.  Embassy Sarajevo 
would like to propose sending our LES based in Mostar 
(Svjetlana Buhovac) and our LES based in Banja Luka (Spomenko 
Guzijan), to train for three days in the U.S. Commercial 
Service office in Zagreb.  The Senior Commercial Service 
Officer and the LES serving in Zagreb have a wealth of 
experience that our LES can utilize in half the time and 
funds it would take to travel to FSI for the Commercial 
Tradecraft course.  We feel that on-the-job training would 
best serve the two employees.  In addition, we would like to 
propose three "Doing Business with the USA" mini-seminars in 
Mostar, Banja Luka and Sarajevo respectively, to be conducted 
by U.S. Commercial Service Zagreb staff.  These seminars and 
any follow-on meetings are an efficient way to further 
utilize the capabilities of our partner post while promoting 
the advantages to working with U.S. companies.  Post will 
look to co-sponsor these programs with the American Chamber 
of Commerce or use Commerce trust funds to cover mini-seminar 
hospitality costs. 
 
b) The impact for the exchanges would be two-fold: 1) an 
increased understanding of the commercial services our staff 
in Banja Luka and Mostar can provide and 2) promotion of U.S. 
commercial diplomacy activities in BiH.  In addition to the 
potential export promotion benefits the seminars and the 
exchange training would provide, the positive media attention 
would further other U.S. policy objectives in the country, 
including our desire to focus on strengthening Bosnian 
economic development and attracting foreign investment. 
 
c) Planning milestones: Ideally, we would conduct the 
training exchanges first, with the mini-seminars to follow 
(i.e. Mostar/Zagreb exchange followed by mini-seminar in 
Mostar).  However, personnel availability is a factor, and it 
is possible that the seminars could be completed first. 
 
d) (Note: All five facets of this program (three 
mini-seminars and two LES exchanges) are not contingent on 
the other parts, thus EEB/CBA could choose to support only a 
portion of the program. End note) 
 
Mostar/Zagreb Exchange 
Travel - $400 
Per diem/MI&E (4 days) - $226 x 4 = $904 
 
Banja Luka/Zagreb Exchange 
Travel - $200 
Per diem/MI&E (3 days) - $226 x 3 = $678 
 
Mini-Seminar Sarajevo 
Travel - $500 
Per diem/MI&E (3 days) - $214 x 3 = $642 
 
Mini-Seminar Mostar 
Travel - $400 
Per diem/MI&E (3 days) - $214 x 3 = $642 
 
Mini-Seminar Banja Luka 
Travel - $200 
Per diem/MI&E (3 days) - $214 x 3 = $642 
 
Total Approximate Cost = $5208 
 
e) Points of Contact: 
 
Econ/Commercial Officer Tracey Newell 
e-mail: NewellTB@state.gov 
tel: 387-33-445-700 ext. 2040 
fax: 387-33-659-722 
 
Econ/Commercial Specialist Edhem Brankovic 
e-mail: BrankovicE@state.gov 
tel: 387-33-445-700 ext. 2134 
fax: 387-33-659-722 
 
PITTSBURGH COAL AND POWER CLASS 
-------------------------------- 
 
¶4.  a) As a third project suggestion, understanding EEB/CBA 
has just asked for two, post would like to propose sending 
our Banja Luka LES, Spomenko Guzijan, to the Department of 
Energy/FSI Coal and Power Class, PE137 in Pittsburgh from 
July 19-23. 
 
SARAJEVO 00000059  003.2 OF 003 
 
 
 
b) Energy, specifically thermal and hydropower, is the most 
promising sector for U.S. exports in Bosnia and Herzegovina. 
Guzijan represents the Embassy's branch office in the 
Republika Srpska, the entity which has proven to be more 
progressive when it comes to advancing its energy objectives 
and looking for foreign investment.  We believe Guzijan's 
participation in this training will help him better represent 
potential U.S. commercial interests in the power generation 
sector. 
 
c) Our planning milestones are straightforward -- Guzijan 
will complete the course in July and follow-up with 
interested U.S. exporters on RS investment opportunities in 
the energy sector. 
 
d) Travel, per diem, and MI&E for the five-day course will 
cost approximately $6000. 
 
e) Points of Contact: 
 
Econ/ Commercial Officer Tracey Newell 
e-mail: NewellTB@state.gov 
tel: 387-33-445-700 ext. 2040 
fax: 387-33-659-722 
 
Banja Luka Branch Chief Heidi-Hakone Jovanovic 
e-mail: JovanovicHH@state.gov 
tel: 387-51-211-500 
fax: 387-51-218-291 
 
 
ENGLISH