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Billy Jean King once said, "Champions keep playing until they get it right." No one knows that better than the New York-based Ogden Corporation who, leading an international consortium called Aeropuertos Argentina 2000, recently won the heavily fought battle to become part owner and operating company for the 33 airports in Argentina's national airport system. Although Ogden and its two partners were up against world-class competition, their dedication to winning the deal was unwavering. TDA had been tracking this remarkable privatization initiative and was pleased to play a role in Ogden's victory.

Leveling the Playing Field
In August of 1996, it was brought to the attention of TDA staff that efforts were underway to privatize 33 airports in Argentina's national airport system. As it was an unprecedented opportunity for American business, TDA offered grant assistance to Argentine officials so as to encourage them to select an American financial consultant. After all, if a U.S. company packaged the privatization, it was more likely U.S. companies would be interested in participating in the project. Though the Argentines were appreciative of the offer they explained that--politically--it was best they not be restricted to selecting an American consultant. The offer, however, extended personally by TDA Director Joe Grandmaison, made it clear that TDA was willing to help.

Shortly thereafter, TDA did assist the Argentines with the privatization efforts. The Agency sponsored a delegation of Argentine civil aviation officials to the United States so that they could personally brief American companies on the progress and process of the project. Though the efforts of TDA (contracted with AAROTEC Educational Foundation, Inc.), and with the cooperation of the Federal Aviation Administration and the U.S. Department of Commerce, 149 individuals representing a wide variety of U.S. aviation interests became directly informed as to how the privatization would proceed. The briefing was held at the Argentine Embassy in Washington, DC. Raul Granillo Ocampo, then Argentine Ambassador to the United States, participated in the event and invited U.S. participation by reinforcing Argentina's commitment to an open process.

Transportation led TDA investments in economic sectors in FY1997 in both numbers of activities and value of obligations. Furthermore, aviation projects led the investments for transportation sub-sectors.

Stepping up to the Plate
By early January of 1997, the number of competitive consortia had been reduced to four groups--only one included a U.S. operating company, Ogden. The scuttlebutt in Buenos Aires was that a "favorite" had emerged--an Argentine group (with passive U.S. investors). Still in the game, Ogden asked the U.S. Trade and Development Agency to shift the momentum of the deal and make the Ogden-led bid, the American bid with U.S. government endorsement. That is precisely what TDA did. Following the Ogden request, TDA offered the Argentine government up to $1 million in technical assistance if they chose Ogden. According to both Ogden and the U.S. Embassy in Buenos Aires, from that point on it was clear the United States wanted to win, and Ogden recommitted itself to cross the line as the champion.

In order to bring it home, there was much work to be done. TDA Regional Director for Latin America and the Caribbean, Al Angulo wrote a letter offering assistance. He reminded the Argentines of how successfully TDA has worked with them in developing their mining sector. He also offered detailed examples of the type of technical assistance that would be available. Angulo sought advice from the FAA's Robyn Cicero and TDA Country Manager Anne McKinney, both of whom had been tracking the project for two years. As a result of Cicero's and McKinney's insight into the pressing issues facing civil aviation authorities in Argentina, TDA was able to use examples which fit the interest of the individuals on the selection committee. Examples included establishing operational procedures, manuals and regulations for the new regulatory authority, ORSNA; support in establishing responsibilities between the aviation services providers (civil airlines), ground concessions, operations and air traffic control; and evaluating the existing air traffic control and radar systems to determine how the capacity of such systems may be expanded through operational procedure adjustments, equipment upgrades and other low investment/high return activities.

TDA's Latin America and Caribbean team: (L-R) Regional Director, Al Angulo, and Country Managers Gabriella Rigg, Anne McKinney and Nathan Young.

In addition, two of the three ministers making the selection were guests of TDA at the Washington briefing. They had already been introduced to the standard of quality, and level of expertise of potential American partners.

The consortium was also hard at work putting together the final push. They submitted their, "best and final" bid on January 23, 1998.

Home Run
When all was said and done, the Ogden-led consortium had walked away with the deal on a $171.12 million per annum offer for a 30 year concession. The competition was so stiff, that the top competitors all came within only five percent of each other's final bids.

What does all this mean for U.S. exports - TDA's "reason d'#&234;tre." U.S. exports could reach $200 million in the first 30 months of the concession, and much more in the coming years.

Once again, congratulations to Ogden Corporation. We also wanted to thank our colleagues at the U.S. Department of Commerce both in Washington, DC and Buenos Aires, Argentina; the U.S. Embassy in Buenos Aires, Argentina; and our great friends at the Federal Aviation Administration for all your help. As for us at TDA, we feel honored to have been able to help make a difference.

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FROM THE DIRECTOR'S DESK.... Keeping Faith with U.S.
By J. Joseph Grandmaison

Do you remember when we used to divide boys' sports teams between the "shirts" and the "skins?" If you saw someone with no shirt on, you would pass the ball to him because you knew he must be on the same team. As a leader of the Clinton-Gore Administration's trade promotion team, we now have a much more difficult time figuring out which companies are our "teammates."

"I propose, therefore, a new covenant between government and business aimed at improving the job creating benefits of export promotion in the next millenium."

It is not always easy to recognize a "U.S. company" - are their shirts on or off? - because they may be fully U.S.-owned but manufacture overseas or be fully foreign owned yet employ thousands of American workers. Even more difficult, some of the companies that claim to be on our team have a nasty habit of kicking the ball into our own. They look to the U.S. Government for assistance winning a contract and then buy their equipment overseas. These are real challenges facing U.S. trade promotion agencies: determining what is a "U.S. company" in today's global economy and establishing a true business/government partnership where companies recognize not only their rights but also their responsibilities to the team.

U.S. workers must be the leading players on the American export team. Our other "teammates" - the companies we do business with and the exporters whose products we promote - should be companies which are creating good American jobs. If a U.S. firm asks for assistance selling the equipment they manufacture in New Jersey, we are glad to help, even if the firm is owned by interests in Sweden. If a well-known U.S.-based conglomerate asks for help selling products they manufacture in Germany, forget it.

In today's global economy, it is less our corporations we must defend, but our workers. Just as we must invest in training and educating our citizens to help them compete in the global economy, we must stand together with the companies that are putting those citizens to work.

When I say "stand together" I am talking about the most sophisticated trade promotion effort this country has ever known - a major accomplishment of the Clinton-Gore Administration. This ranges from senior level U.S. Government advocacy, new trade agreements, progress fighting foreign corruption, and effective trade finance agencies (including the Trade and Development Agency, which I am privileged to head) to an ambassadorial corps whose focus on commerce now rivals that of French ambassadors who almost seem to work on commission.

This Administration has gone far beyond the "Bill of Rights for American Business" announced in 1989 by then Deputy Secretary of State Lawrence Eagleburger. He established a standard for what businesses could expect from his department: consideration of business views on foreign policy matters, sound business advice on foreign markets, assurance of fair rules of international trade, active support of U.S. firms in international bids, and dispute resolution assistance overseas.

But the good sisters at Holy Infant Jesus taught me that with "rights" come responsibilities. I believe that when a U.S. business seeks its government's support in winning a contract overseas, that support must not be considered an entitlement. It must be earned.

If a company enjoys taxpayer-supported trade finance assistance or the prestige of a U.S. ambassador acting on its behalf, U.S. workers and taxpayers should expect something in return. That U.S. company should feel a moral, and in some cases legal, obligation to maximize the goods and services it buys in the United States. If a U.S. company makes the business decision to purchase equipment through its European operation, it should get any help it may require from the Europeans.

I propose, therefore, a new covenant between government and business aimed at improving the job creating benefits of export promotion in the next millennium. It is called Keeping Faith with U.S. Whereas U.S. companies often the need the partnership of the U.S. Government to counter assistance provided by foreign governments to their firms, whereas the U.S. Government receives a large number of requests for assistance in the international marketplace, and whereas that support is often interpreted as an endorsement by the U.S. Government, be it therefore resolved that the U.S. Government rededicate itself to a partnership with American business and that U.S. companies receiving such support recognize they owe a debt to the working men and women of America. American companies must protect the value of the U.S. Government's involvement by offering quality products at competitive prices. Companies must provide accurate and complete information to their U.S. Government partners, as they would to any respected business partner. Where a company is performing services on a contract overseas that the U.S. Government helped it win, the government should have the right to expect the best possible performance. Most importantly, if the U.S. Government helps a company win a contract overseas, it should make every reasonable effort to buy goods and services for the project here at home.

The stakes are high. Exports are increasingly important to the American economy and U.S. Government assistance is more comprehensive than ever. U.S. exporters - in some cases with government help - have racked up huge successes selling to every corner of the earth. But I believe we can do more to achieve a truly successful business/government partnership in international business. The Administration needs to further clarify what we expect from U.S. exporters seeking assistance, and the exporters must respect the responsibility to U.S. workers that comes with the privilege of government advocacy. I am confident that the U.S. business community will not hesitate to let us know what they think the Administration's export promoters could do better - as well they should. That is what a partnership is all about. But just as it is not always easy doing business with the U.S. Government, working with some U.S. companies is not always a trip to Hawaii.

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Making the Most of Your Time: Upcoming TDA Conferences and Events

CAPTION:One of the 221 small businesses leaders attending TDA's Small Business Outreach Program on February 5th takes advantage of a Question and Answer period. The program, held in the Rosslyn Spectrum in Arlington, Va., offered detailed information on the Agency's opportunities for small businesses. Following the morning presentations, conference participants filled the hallways of the TDA offices during a four-hour Open House where participants could speak personally with TDA staff. The year is moving forward quickly, and 1998 is already shaping up to be a successful year for TDA conferences and events. Events such as the Small Business Outreach Conference and Asia Transport '98 are among the many events that have already shaped the business decisions of many U.S. companies this year.

While each conference and event is unique, they each have the same goal--to get U.S. businesses in the lead of ever increasing foreign competition. "TDA's conferences offer participants valuable information that keeps them one -- or even many-- steps ahead of competition in emerging markets," said J. Joseph Grandmaison, Director of TDA. "We not only offer you the information you need, we give it to you straight from the source."

Participants in TDA conferences and events learn about projects from overseas senior government and private sector project sponsors. In addition, projects featured undergo a thorough investigative period to ensure they are the best opportunities for American companies. "I found the Asia Transport 1998 Conference to be quite beneficial, " said John W. Stubenroll, Vice President of Aspen Aerials, Inc. of Duluth, Minn. "Not only did it give me a chance to get a better understanding of future Asian Transportation plans, I was also able to introduce our products to key government officials."

There are many more exciting event coming up this year including three very important events in April. The Chilean Environmental Orientation Visit (April 5-10) will be comprised of a 16 member delegation led by the Chilean Ministry of Economy and the Chief of Environment. Delegates will discuss 12 environmental projects and Chilean environmental concerns with U.S. firms. These delegates will visit San Antonio and Houston, Tex. followed by a business briefing in Washington, D.C. where they will attend a business briefing on April 8.

The Africa and Middle East Aviation Symposium on April 20-22 in Manhattan Beach, Calif., is the first of two, back-to-back conferences. Workshops at the conference will highlight over 20 aviation projects underway through out the region from construction and equipment to management and privatization. In addition to officials and project sponsors from overseas, many U.S. officials will be on hand, including Jane Garvey, Administrator of the Federal Aviation Administration.

Immediately following the Aviation Symposium, TDA move up the coast of California to San Francisco and across the continent of Asia to host Telecommunications & Information Technology in Central and Eastern Europe (April 22-24) Project sponsors from Albania, Bosnia, Bulgaria, Croatia, the Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Macedonia, Poland, Romania, the Slovak Republic, Slovenia, and Turkey will be on hand to present 60 projects valued at $20 billion and meet one-on-one with U.S. firms. As with most TDA conferences, each participant will receive a comprehensive project briefing book. It will include market assessments and detailed information about each project including key contacts.

TDA's Latin America and Caribbean team: (L-R) Regional Director, Al Angulo, and Country Managers Gabriella Rigg, Anne McKinney and Nathan Young.

May brings us the Crossroads of the World Conference (May 27-29,). This conference is quickly becoming one of TDA's largest and most exciting events in 1998. Since the breakup of the former Soviet Union, TDA has been a pioneer in opening new markets to U.S. companies in the resource-rich Central Asia, Black Sea, and Caucasus region. This is a region with nearly untapped potential. In this emerging market, many nations are eager to do business with American companies. In addition, the conditions to do business are extremely favorable because of stable growing economies which are based, in part, on a variety of natural resources. U.S. companies will be introduced to more than 100 of the most promising projects in the oil and gas, mining and minerals, power, and surface transportation sectors.

Regional development of the oil and gas infrastructure alone in the Caspian region, including major pipelines, means project expenditures of $25 billion by the year 2010, and more than $135 billion by the year 2030. These projects have major U.S. export potential. In addition to oil and gas, there are many other opportunities. Some examples of the projects to be featured include: several gold mining projects, focusing on modernization of existing mines and processing plants and construction of new ore processing facilities in Uzbekistan; independent power projects, to be promoted by the Government of Turkey, are valued in excess of $11 billion; and a major facilities upgrade at the Port of Burgas, Bulgaria, is creating opportunities for container processing equipment, bridge cranes, and construction of a new bulk terminal, valued at $154 million in U.S. export potential.

The conference is creating a lot of energy here in Washington. It will be attended by the U.S. Ambassadors to ten of the 13 participating countries and the directors of the Export-Import Bank of the United States and the Overseas Private Investment Corporation.

Finally, the South Balkan Transportation Roundtable will leading us into summer (June 2-4). This region of the world is one of the most challenging, but there are few places where the needs are so great and the opportunities so open to American firms. To bring U.S. companies up-to-date on these opportunities, TDA will host a business roundtable on in Ohrid, FYR Macedonia. This three day event will include presentations of feasibility studies and projects which have been completed, as well as an open discussion of future activities for the South Balkan Development Initiative and the South Balkans (Albania, Bulgaria, and Macedonia).

Many more conference and orientation visits will take place throughout the year. To keep informed of the latest developments, watch for more information in Update and the Pipeline or visit our web site at www.tda.gov.

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Clinton/Gore Administration Requests $50 Million for TDA

President Clinton renewed his commitment to America's leadership in the global marketplace in his State of the Union Address this past January. His words spoke of the importance of American business, labor and technology in shaping a prosperous global economy in the next century. Less than a week after his speech, he put those words into action.

The Clinton/Gore Administration released their proposed budget to Capitol Hill on February 2, just five days after highlighting trade as one of the Administration's priorities for the coming year in the annual State-of-the-Union address. The Budgetary request for Fiscal Year 1999 for the U.S. Trade and Development Agency was $50 million dollars--a significant increase over FY98 appropriation of $41.5 million.

During the course of an average year over $200 billion worldwide is invested in infrastructure projects in developing countries. TDA's investments in these types of projects is critical to America's continued leadership in the global economy. U.S. companies face fierce foreign government-supported competition overseas. For example, the British provide more than 17 times as much feasibility study support for their firms as does TDA, relative to the size of their economy.

TDA makes the most of it's investments in projects around the world, ensuring that each project is the best opportunity to U.S. companies. In addition, the agency uses cost-sharing and success fee programs enable us to leverage our investment dollars further. Though many embrace the popular concept of the global community becoming smaller, the new markets, and therefore the global economy, continue to grow. TDA must adjust to that growth.

The increased investment in TDA will allow the Agency to continue our work in the many developing regions where Americans are already leading the way, as well as strengthening its relationships in growing markets such as Romania, Mexico, and many African nations. Furthermore, the additional funds will allow us to take on some exciting new challenges in Azerbaijan, Pakistan and Vietnam.

The Agency's success translate directly into increased U.S. exports, which means more U.S. jobs for the American worker and a stronger U.S. economy for everyone. In the past 16 years, more than $10.5 billion dollars in U.S. exports can be attributed to TDA activities. That is $31 in exports for every dollar the agency has invested--one of the best taxpayer investments in Washington.

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New Faces at TDA

If you have been by the TDA offices recently, you may have noticed that some of the faces have changed. We are pleased to welcome three new staff members, and wish one staff member the best of luck as she pursues new opportunities.

Dierdre Curley, Assistant Director of Management, has departed TDA after seven years of service. "I have really enjoyed the people and the chance to put together a great administrative team," said Curley who has been instrumental in TDA's growth. She looks back on the growth of the agency --from its staff to its accomplishments--with both amazement and pride. After her dedicated service to TDA's goals, Curley will stay in the Washington, D.C. area, where she intends to spend time pursuing personal goals.

Assuming the position of Assistant Director of Management will be Larry Bevin. Bevin, a Missouri native, comes to TDA from the Corporation for National Service. His experience reflects his understanding of the importance of international growth and partnership that is critical to TDA's work. In addition to his managerial expertise, Bevin once served as a Peace Corp volunteer in Africa.

Patricia Smith will join TDA as the new Grants Administrator. Smith, originally from South Dakota, will dedicate her time to the administration and monitoring of TDA's grant program. This new position will further review feasibility study reports, manage the success fee program, assist with audit and evaluation of TDA investment, and provide guidance and information to U.S. firms and foreign sponsors concerning TDA grant administration. Smith joins TDA from George Washington University in Washington, D.C. where she was a proposal coordinator.

The Legislative and Public Affairs Office has a new face in Joy Stenner. Stenner, the new Legislative/Public Affairs support personnel, joins TDA from Capitol Hill where she served on the staff of Senator Charles Robb of Virginia. She graduated summa cum laude from Virginia Commonwealth University where she studied political science, with a double minor in Latin American studies and Spanish. Stenner is currently earning her Master's degree at George Washington University. Kyla Bosselman, previously in the Legislat ive/Public Affairs position, has joined to the Administrative team.

Asia Transport 1998 helping pave the way to U.S. Exports. More than eighty U.S. business people, twenty four Asian private sector companies, and thirty eight Asian project sponsors participated in this three day conference in Bangkok, Thailand, March 3-5, 1998. U.S. business executives had a chance to listen to Asian transportation project sponsors to learn how they can further work together to build partnerships on the best 30 project opportunities in the road, rail, port and inter-modal sub-sectors. In addition, working groups focused on the latest technologies to address congestion, expediting shipments, and containing costs took place. Shown above, TDA Deputy Director, Nancy Frame signed a $350,000 grant for a feasibility of the privatization of locomotive and rolling stock maintenance facilities in Thailand with the State Railways of Thailand (SRT). U.S. Export potential for this project is estimated to be between $40 and $125 million annually, depending on which alternative solution is finally adopted by SRT. Participating in the conference was U.S. Ambassador William Itoh, U.S. Deputy Secretary of Transportation Mortimer Downey, and Thailand's Minister of Transportation Suthep Thaugsuban. (photo left to right: U.S. Commercial Service Officer John Wood, TDA Deputy Director Nancy Frame, U.S. Ambassador William Itoh, Minister Suthep Thaugsuban, SRT Deputy General Manager

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