GE to build Kuwait's Subbiya power plant

Kuwait's central tenders committee has chosen General Electric to build a 2,000 megawatt power plant, a newspaper said on Wednesday.

General Electric is the preferred choice of Kuwait's Ministry of Electricity and Water to build the Subbiya plant, daily al-Watan said in an unsourced report.

General Electric has already been chosen, but it needs the final approval of the Audit Bureau,” Meshan al-Otaibi,a spokesman for the emirate’s Ministry of Electricity and Water told Bloomberg.

GE was selected “because it had the lowest bid” of KWD760 million (US$2.65 billion), beating Siemens AG for the proposed plant in Subbiya, he said.

In April, Kuwait issued a new tender to build turbines for the plant in the north of the country, which is due to come on stream in 2011, saying it expected

the cost to be far less than earlier estimates in excess of KWD700 million.

Apart from General Electric, Kuwait had pre-qualified Germany's Siemens, Japan's Mitsui & Co and Marubeni Corporation, Spain's Iberdrola Ingenieria Y Construccion, and Canada's SNC-Lavalin Limited,

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African trade blocs agree to simplify rules of origin

Three of Africa’s leading regional trade blocs – the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Community (SADC) – have simplified the rules of origin to be applied by all member states in a move to boost intra-continental trade.

Simplifying and merging the criteria used by traders in the three blocs was part of the mandate of a task force set up by the respective Heads of State during the first Tripartite Summit held in Kampala, Uganda in October 2008.

EAC Director-General in charge of Customs and Trade, Peter Kiguta, said a draft of the hybrid rules of origin is ready.

“It is much simpler; it is expected to facilitate trade once the three regional economic trading blocs establish a Free Trade Area”, Kiguta told The East African.

Rules of origin refer to the criteria used to distinguish between goods produced within the member states and thus eligible for the trading bloc’s preferential treatment, and those produced outside the region’s customs territory that attract duties.

For instance, the EAC trade regime specifies that goods qualify for EAC tariff treatment if they originate within the partner states. This means that all goods meeting requirements of the EAC Rules of Origin qualify for EAC tariff treatment when they are traded within the region.

Traders in the EAC, COMESA and SADC are currently forced to do business under three different rules of origin, a cumbersome and expensive affair. The three sets of rules of origin are also said to be “complicated”, with many business people calling for them to be simplified.

“The rules of origin belonging to the individual economic blocs will be abolished when the hybrid one comes into force. It is better and simpler”, Kiguta said.

However, the new criteria will not come into force immediately as they will have to wait until the three regional organisations become a Free Trade Area, he said.

The Tripartite Summit agreed, among other things, on a programme of harmonisation of trading arrangements among the three regional economic communities (RECs); free movement of business persons; joint implementation of inter-regional infrastructure programmes; and institutional arrangements on the basis of which the three RECs would foster cooperation.

With regards to trade, customs and economic integration, the Summit approved the “expeditious establishment of a Free Trade Area encompassing the partner states of the three trading blocs, with the ultimate goal of establishing a single Customs Union”

The Tripartite Task Force was also directed by the Summit to develop a road map for the implementation of this merger.

On measures to facilitate the movement of business persons across the trading blocs, the Summit directed that, among other things, the study report on the road map and legal framework be presented to a specially convened Tripartite Council of Ministers for consideration within 12 months (by October this year) in order to determine the timeframe for the establishment of a single FTA encompassing the three regional organisations.

The EAC-SADC-COMESA Summit was a historic event, marking the first time since the birth of the African Union that key building blocks of the African Economic Community met on how to integrate territories and move towards deepening and widening integration within the overall Abuja Treaty for the establishment of the African Economic Community.

The three blocs currently have a combined population of 527 million people and a combined gross domestic product (GDP) of US$625 billion.

Author: Ayieko, Francis (The East African, Nairobi)

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Gauteng hosts United States Congressional Delegation

Johannesburg. Following the recent visit to South Africa by United States Secretary of State Hillary Clinton, the spotlight is back on South Africa’s richest province and Africa’s third biggest economy Gauteng, when the provincial government hosts the powerful U.S Congressional delegation led by Rep. G.K Butterfield (D-NC) on Thursday 20th August 2009 at Emoyeni Centre in Parktown, Johannesburg starting at 19h00.

GEDA Chief Executive, Blake Mosley and Gauteng Economic Development MEC Firoz Cachalia will join Premier Nomvula Mokonyane in hosting the Congressional delegation which is expected to arrive in the country this afternoon. Rep. Butterfield will be accompanied by fellow congress members Rep. Lacy Clay(D-MO), Rep. Gwen Moore (D-WI) and Rep. Steven Cohen (D-TN) and leading figures in the commerce, trade and consumer department.

Key amongst the issues to be discussed is the strengthening of business and trade relations between South Africa and in particular the Gauteng City Region and the U.S with special focus on smart industries and projects that can create decent and sustainable jobs. Over the past years trade between South Africa and the US amounted to $6.4905 in exports and $9.9480 in imports with a trade balance of $-3,457.6 in 2008 while through its dedication and hard work GEDA facilitated investments worth $500million into the province’s economy from U.S based companies in 2008/9 like Proctor & Gamble which has just established Africa’s first pampers plant in Kempton Park, Johannesburg.

“We are looking forward to a fruitful engagement with the Congressional delegation as this presents an opportunity for South African organized business formations and individual business owners who are looking at the US as a key market to possibly explore quicker ways of accessing this $13trillion economy,” explained GEDA Chief Exec. Blake Mosley-Lefatola.

Gauteng will use the occasion to sell to the delegation investment opportunities in the information and communications technology, agro-processing, pharmaceuticals, renewable energy, business process outsourcing, automotives and the creative industries sectors. We will also use these engagements to interact with the review process of the Africa Growth and Opportunity Act (Agoa) as Gauteng is one of the major beneficiaries and also prepare for the Gauteng delegation visit to Washington scheduled for September this year.

Premier Mokonyane is expected to lead both the business and political delegation to the States to further explore opportunities in the above sectors and hopefully sign a sisterhood and cooperation agreements with the State of Illinois, concluded Lefatola.

Members of the media are hereby invited to the occasion to interact with the delegation and hear more about the province’s plans on promoting trade and investments with the United States. For confirmations and accreditation please liaise with Mr. William Baloyi at +27118338750/ 0833907147 orwilliamb@geda.co.za.

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President Barack Obama's message to the AGOA Forum

THE WHITE HOUSE

Office of the Press Secretary
______________________________

_______________________________________
For Immediate Release August 5, 2009

President Barack Obama's video message to the AGOA Forum

Nairobi, Kenya
August 5, 2009

Hello everyone. I'm sorry I couldn't be there with you in person. But please know that for me and for my family, the memories from our recent trip to Ghana are still fresh-we will always remember the warmth of the Ghanaian people and the promise of Africa's potential.

I hope you're enjoying Kenya-and the hospitality of the Kenyan people-as much as I always have. When I first came in 1987, it was to discover the story of my father, who had grown up herding goats in the tiny village of Alego. When I visited as a Senator, I promised to work for a U.S. foreign policy that gives hope and opportunity to the people of this great continent.

Today, it is my privilege to address you as President. And I want to repeat what I said three weeks ago in Accra. I do not see the countries and the peoples of Africa as a world apart. I see Africa as a fundamental part of our interconnected world. In our global economy, our economic fortunes are shared. And history shows that economic growth is among the greatest forces for progress in lifting people out of poverty.

That's why the African Growth and Opportunity Act is so important. That's why the AGOA Forum is so critical. By breaking down old barriers and opening new markets, we not only increase trade between our countries. We create powerful incentives for African entrepreneurs to grow their businesses, to create jobs and build a brighter tomorrow for their children. That is what AGOA is all about.

So I thank President Kibaki and Prime Minister Odinga for hosting this Forum. And I pledge to you the full support and partnership of the United States. That is why my Administration is represented there today by outstanding members of my Cabinet.

Over the last decade, AGOA has transformed the U.S.-African trade relationship. Opening America's doors to your exports has been good for Africa-creating African jobs, bringing millions of dollars of investment to sub-Saharan Africa and sparking new trade across the continent. And it's been good for America-with African exporters seeking U.S. expertise, investments and joint-ventures. And today, we're your single largest trade partner.

At the same time, it's clear that U.S.-African trade has yet to realize its full potential. And if the current recession teaches us anything, it's that in a global economy not only the opportunities are shared. So are the risks. So there's so much more we can do together to plant the seeds of our economic recovery, and to achieve lasting prosperity.

Only Africans can unlock Africa's potential. It will take your entrepreneurship. Your innovation. And only Africans can ensure the good governance and strong institutions upon which development depends. Open markets alone are not enough. Development requires the rule of law, transparency, accountability, and an atmosphere that welcomes investment. And I encourage every country to set concrete goals for overcoming the obstacles to economic growth.

And to all Africans who are pursuing a future of hope and opportunity, know this: you have a partner and a friend in the United States. That's why we'll work with you to develop strong institutions, clear legal frameworks and the regulations and infrastructure that help bring new products to market. That's why we'll work together to harness Africa's vast natural resources to generate clean, renewable energy for export. That's why I've pledged substantial increases in our foreign assistance-not simply to help people scrape by, but to unleash transformational change. And that's why we've joined with our international partners to promote food security by investing $20 billion in agricultural development-not simply to hand out American food, but to promote African self-sufficiency.

These are the things we can do together to unleash the skills and talents of our people. And to ensure our common prosperity in the 21st century. And if we do, I'm confident that Africans can live their dreams from Nairobi to Accra, from Lagos to Kigali, from Kinshasa to Cape Town.

Thank you for your work at this important Forum. Enjoy Nairobi.

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