Mission Statement

Power-Gen Trade Mission
Orlando, Florida and Atlanta, Georgia

December 9 - 16, 1998

Mission Description:

The Commercial Service (CS) Saudi Arabia will lead a Business/Governmental Delegation to Power-Gen '98 trade show and a two day Reverse Trade Mission (RTM) to Atlanta, GA, from December 9 16, 1998. The RTM will target the Power Generation Distribution, and Transmission equipment, services, and technologies industries, including engineering, consulting, and construction equipment sectors. The focus of the delegation will be to match participating Saudi companies with qualified U.S. agents, distributors, representatives, licensees, end users, and joint venture partners in these markets. The delegation will be led by Nasir Abbasi, Commercial Officer CS Riyadh and Riad Saab, Commercial Specialist from Dhahran. U.S. companies seeking to request a meeting should contact the persons listed on the last page.

Commercial Setting:

The Saudi import market for power generation equipment amounted to $531 million in 1997 and is expected to grow by more than 10 percent annually over the next 2-3 years. Saudi Arabia's population is increasing at an estimated rate of 3.2 percent annually, while the demand for electrical power is expanding by 11-12 percent annually. The existing capacity at power plants rose more than five-fold, from 4,000 MW in 1977 to 22,311 MW in 1997. Industry sources expect generation capacity to reach more than 30,000 MW by the year 2000. Demand for power is being increasingly strained by the rising number of factories, particularly in the oil, gas and petrochemical industries. This industrial sector is the largest consumer of electricity, accounting for approximately 60 percent of electricity sales.

The Saudi Consolidated Electrical Companies (SCECO) and other major utility organizations have been forging ahead with projects such as the PP-9 in Riyadh, Ghazlan II in the Eastern Province, and Shuaiba in the Western Province to augment power supply and accommodate the rising demand over the next four to five years. Another factor which will positively influence the demand for power generation equipment is the relatively low electrification rate in the Northern part of Saudi Arabia; a 50 percent rate compared to more than 80 percent for the rest of the country. In addition, some rural areas, especially in the South, are still not connected to the Saudi electrical network.

U.S. suppliers held a 25 percent share of the import market in 1997. That share is expected to be higher in 1998 and 1999. U.S. equipment proves to be lasting, reliable, and backed by better and more dependable after-sales service.

Mission Goals:

The RTM's goal is bring first-hand market information to both U.S. and Saudi companies and provide access to key government officials and potential business partners for new-to-market, new-to-export U.S. power generation, transmission and distribution equipment and service firms desiring to enter this $531 million market.

Mission Scenario:

The mission will begin in Orlando, Florida and allow attendees to take advantage of the Power-Gen International 98. This show is the world's leading power generation event bringing together all components of today's global marketplace. The mission will then travel to Atlanta, Georgia. At this stop, CS Saudi Arabia will provide an extensive market briefing highlighting opportunities in the Power generation, transmission and distribution sector, schedule one-on-one appointments with potential business partners for each Delegation member and arrange a receptions to introduce the participants to key business and government officials. Participants can expect to meet with 4-5 pre-screened business partners on the first day. This is a nationwide recruitment effort.

Timetable:

Participants will spend three days (December 9-11) in Orlando, Florida, attending the Power-Gen International '98 show and meeting key manufacturers and suppliers. During these three days CS Saudi Arabia will also arrange site visits to power plants in Florida. The delegation will travel to Atlanta on December 13. There they will have one day of one-on-one meetings (December 14). The next day will be left for follow ups and plant tour of the Southern company facilities (December 15). The RTM will conclude on the evening of December 15 and will travel back to Saudi Arabia on or about December 16.

RTM promotion will include but not be limited to the following venues: the Export Assistance Centers and Teams; Business America Magazine; relevant trade publications; relevant trade associations; past Matchmaker and Commerce trade mission participants; various in-house and purchased industry lists. The RTM will also be listed in the Federal Register and on ITA's Internet home page.

Recruitment will begin as soon as the mission statement is approved by the trade events board and will close on November 4, five weeks prior to the start of the mission. This is a cost recovery project with no U.S. Government funds.

Criteria for Participation:

Any partisan political activities of an applicant, including political contributions, will be entirely irrelevant to the selection process.

Contact Information:

Nasir Abbasi, Commercial Officer
Commercial Service Riyadh
American Embassy, Unit 61307,
APO, AE, 09803-1307

Tel: (9661) 488-3800 Ext. 1519
Fax: (9661) 488-3237

Email: NAbbasi@cs.doc.gov

Samuel P. Troy, Director
285 Peachtree Center Avenue, NE, Suite 200
Atlanta, Georgia 30303-1229

Tel: 404/657-1900

Fax: 404/657-1970

Philip A. Ouzts, Manager
200 E. Robinson Street, Suite 1270
Orlando, Florida 32801

Tel: 407/648-6235

Fax: 407/648-6756