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U.S. Trade and Development Agency (USTDA) Projects

During its 21-year history, CORE has conducted over 350 USTDA projects, including definitional missions, desk studies, technical assistance, and training programs. We have provided services for foreign buyer program orientation visits, organized conferences and business briefings to allow U.S. exporters to learn about business opportunities in major infrastructure projects around the world.

The most recent projects implemented by CORE for USTDA include the following:

In June 2005, the U.S. Trade and Development Agency (USTDA) selected CORE International, Inc. to conduct a definitional mission to evaluate hydrocarbon sector projects in Colombia.  In light of the various on-going and planned activities in the Colombian oil and gas sector, as well as projects proposed by the various Colombian petroleum sector entities the Ministry of Energy and Mines (MME), the National Hydrocarbons Agency (ANH), and Ecopetrol, the national oil company, CORE focused on the following areas:

1. Support to the National Hydrocarbon Agency (ANH), the national regulatory body charged with issues, contracts, and concessions for petroleum exploration, in a number of areas for regulatory capacity building and strengthening, including developing a strategy to utilize its $70 million investment fund;

2. Support in the area of heavy crude oil exploration and production projects;

3. Potential refinery upgrade projects and pipeline projects given the rapidly changing landscape of the petroleum sector in the country.

Due to the large number of requests from the Colombian entities for a variety of assistance, CORE International, Inc. classified the requests into two groups.  Group 1 includes project requests that are the highest priority projects and meet or exceed USTDA criteria for funding projects.  Group 2 includes requests from Colombian entities that may become more interesting over time and are possible candidates for further assessment when more information is available on these projects.  These requests are documented as part of the findings of the CORE Team and could be candidates for consideration in the subsequent stages of USTDA’s deliberations with the Colombia authorities.

CORE International has recommended the following Group 1 projects for potential USTDA support.  All of these projects meet USTDA criteria for funding:

1. Technical Assistance to the ANH in Enhancing its Capacity in Bid Evaluation, Selection Criteria, Negotiations, and Regulatory Reform;

2. Feasibility Assessment for the Reworking of Existing Marginal and Mature Fields to Increase Ultimate Recovery Rates;

3. Integrated Master Plan for the Barrancabermeja Refinery;

4. Feasibility Study for Pipeline Safety, Integrity, Security, Theft Reduction, and Emergency Management for both Crude and Product Pipelines in the Entire Colombian Pipeline System;

5. Capacity Building Assistance to the Colombian Petroleum Association (ACP) in Information Development and Knowledge Management in the Petroleum Sector.

Projects in Group 2 include the following activities that may be pursued at a later point.  No details are available about these project requests:

1. Technical Assistance for the Technical and Financial Evaluation of Tenders in Response to a Tender Issued by Ecopetrol for a Heavy Crude Oil Development Project;

2. Feasibility Study for a Heavy Crude Development Project by a Consortium of Prime Natural Resource, Inc. (USA) and Meta Petroleum (Colombia)- A Private Sector Cost Shared Feasibility Study;

3. Technical Assistance for the Audit and Documentation of Reserves in Colombia;

4. Technical Assistance for Benchmarking of Drilling Costs and Best Practices in Least Cost Development Strategies;

5. Technical Assistance for Designing an Optimum LPG Use Balancing Strategy;

6. Feasibility Study for Dynamic Transfer Metering at Stations Along the Pipelines;

7. Technical Assistance for a $10 Million, 65km. Pipeline Interconnection BOT Project;

8. Cusiana Gas Project Options Assessment Study and Technical Advisory to Ecopetrol in Gas-to-Liquid (GTL) Option and the Extension of the BP-TOTAL Contract Extension;

9. Feasibility Study for a Pipeline Expansion Project to Supply Gas to Panama;

10.  Master Plan for the Development of Bio-fuels in Colombia;

11.  Capacity Building Support to CREG in Gas Market Design, Market Operations, Contracts, and Coordination with the Electricity Market.

These Group 2 projects are at the idea stage and the Colombian authorities plan to develop these ideas further before approaching USTDA for support.

Exhibit I provides a summary of CORE International’s recommended feasibility study and technical assistance opportunities for USTDA.  For projects recommended for USTDA support, CORE International has prepared scopes of work and budgets as well as justification for funding, as required by USTDA, which are included in CORE’s Final Report available from the U.S. Trade and Development Agency.

Exhibit I: Proposed Feasibility Study and Technical Assistance Grants – Colombia Hydrocarbon Sector

The Ministry of Oil in Iraq and its associated companies employ some 60,000 personnel, including contract employees. The development of the oil sector is of crucial importance to Iraq's economic development, and regional stability and peace. During the last decade Iraq has suffered from war and UN sanctions, causing the development of the oil sector to fall behind the world standards in the oil industry. Bringing the Iraqi oil sector back into the competitive world market will require technical training, skills development, and overall institutional capacity building at every level within the Ministry.

Through funding from the U.S. Trade and Development Agency, CORE International, Inc. performed a training needs assessment for the Iraqi Ministry of Oil. The needs assessment involved discussions with numerous industry specialists and experts with a wealth of knowledge and experience in the oil and gas sector generally and in Iraq. Representatives of U.S. oil companies, U.S. firms currently working in Iraq, U.S. associations, universities, societies, and training organizations, as well as a number of U.S. Government agencies: the Department of State, the Department of Energy, the Department of Commerce, the U.S. Agency for International Development, the Export-Import Bank, the Department of Transportation, and others, participated in the compilation of information and evaluation of CORE's proposed training program recommendations. These recommendations, compiled in the CORE Report, were discussed with oil ministry officials in Iraq and proposed training programs vetted for content, relevance, prioritization, and venue. A complete consensus was reached among all parties on the urgent need for the capacity building program and its developmental priority for Iraq.

The CORE Report recommends a series of courses in three key areas: (i) Management Themes; (ii) Technical Themes; and (iii) Human Recourse Management/Human Resource Development Themes. The proposed training program targets three levels of the Ministry of Oil personnel: Senior Management, Mid and Junior Management Personnel, and Junior Engineers and Technicians. The CORE Report also emphasizes modern training tools for training delivery and sustainability including: (i) In-Class Instructions, (ii) International Best Practices, (iii) Case Studies, (iv) Field Visits, (v) Demonstrations and Simulation Exercises, (vii) Internships, (vii) Study Tours, (viii) e-Learning, and (ix) Distance Learning.

The training program included in the CORE Report is a basic first stage program with the budget of approximately US $2.5 million. The report recommends that this program be used by the Ministry of Oil as a basis for integrating training and change management into the Ministry's overall culture by institutionalizing this program within the Human Resource Management functions of the Ministry. The CORE Report also makes specific strategic recommendations for leveraging this program with other donors and the private sector. Through the proposed training program, the Ministry of Oil can begin the process of institutionalizing training as a regular and on-going function in the Ministry.

All of the proposed training has a high priority and needs to be completed within the next two years with the bulk of training provided during the first year. The training program proposed in the CORE Report will provide training and study tours for over 700 participants from the Ministry of Oil in Iraq.

Definitional Mission to Evaluate Projects in Indian Aviation Sector

The U.S. Trade and Development Agency (USTDA) selected CORE International, Inc. to conduct a definitional mission to identify and evaluate civil aviation projects in India.  The key objectives of this definitional mission were as follows:

• Hold discussions with key officials from the U.S. and Foreign Commercial Service (USFCS) in India; members of the Aviation Cooperation Program (ACP), a new group formed in India to promote aviation cooperation between the U.S. and India; key aviation sector officials in India in the Ministry of Civil Aviation, Airport Authority of India, and the Directorate General of Civil Aviation and managers of public and private airlines;

• Participate in the first meeting of the ACP organized by the USFCS officials in India and gain insights into the key challenges and opportunities in India’s fast growing aviation sector;

• Review key issues associated with the aviation sector and the need for the modernization of the airport and the air traffic control facilities, including aviation safety and security systems and passenger service;

• Make specific recommendations to TDA on potential grant funding to support the aviation sector priorities in India in light of a major sector reform and market development in the country and the ever increasing demand for passenger and cargo in and around the country.

During the field Mission, the CORE Team held discussions with various aviation sector officials.  The Team held extensive discussions on the following subjects:

• The current airspace and Flight Information Region (FIR) configuration and the responsibilities of India in the management of its airspace over the entire country;

• The current status of the international and domestic airports in terms of their management, operations, capacity, security and safety of operations, and any modernization and new construction plans;

• The current air traffic control and airspace management systems (including the locations of the various Area Control Centers – ACCs) and equipment in the country;

• The training needs of the airport management and air traffic control personnel;

• The airline market, including the emergence of new private air carriers offering domestic services, and growing international air flights;

• The current aircraft market in India, particularly the recent purchase of 50 Boeing aircrafts, and potential needs for additional aircrafts and various aviation equipment and systems.

Based on discussions during the mission and the evaluation of the needs in the aviation sector in India, CORE recommended four specific grants to the Airport Authority of India as summarized below:

1. Design of an Airport Development and Modernization Master Plan for India

This feasibility study (FS) will assess the current status of the Indian airports, and result in the design of an Airport Master Plan that will include a phased investment program for the Indian airports modernization and development.  The objectives of the Airport Master Plan are to (i) increase the capacity of the existing airports, (ii) provide improved and additional services to domestic and international passengers, (iii) improve the reliability of cargo handling, and (iv) enhance overall flight security and safety.  The proposed study will start with the full universe of some 100 airports that will be prioritized and a list of airports of focus for the study will be quickly developed based on their importance to the National economy and regional aviation traffic patterns.  In addition to reviewing the current operational practices and the related ATC, air navigation, and communications at the airports, the proposed study will include the development of estimates of system and equipment requirements and investments needed for the modernization and development of the airports.  Also, the FS will include financial analysis of the project and recommend creative financing options.

CORE is proposed a grant in the amount of $1,000,000 to finance the cost of the Airport Development and Modernization Master Plan development.

2. Orientation Visits/Study Tours for Two Groups of Mid and Upper Level Airport Managers

The rapidly growing aviation sector in India, accompanied by an increased number of domestic and international airlines and a fast growing passenger and cargo transportation demand, is posing challenges to the current institutional capacity of airport management and requires new approaches in the management of the international and domestic airports based on modern business practices worldwide.  This point was underscored by the Chairman of the Airport Authority of India and his senior managers particularly as most of the top managers of the airports will be retiring over the next 5-10 years and the mid level managers are not ready to takeover the management of the airports. 

Therefore, CORE is recommending orientation visits/study tours for two groups of mid- and upper-level Indian airport managers to the United States to visit various airports in the U.S. and exchange views and information with the U.S. airport managers.  During the proposed orientation visits (study tours), the Indian airport managers will familiarize themselves with the latest U.S. aviation technology and systems in airport management and development (airport passenger and cargo operations, facilities, tarmac activities, aircraft services, crash/fire/rescue services, concessions management, cost and revenue forecasting, budget management, etc.), ATC, telecommunications, radars, weather/meteorology, financial management, business operations, etc. 

The program participants will also have an opportunity to meet with the U.S. vendors and suppliers of airport equipment and technology (security apparatus, loaders/unloaders, forklifts, cargo loaders, catering services, aircraft fueling, ground communications equipment, etc.) typically used to improve management efficiency of airport operations.  In addition, the Indian airport managers will learn modern approaches for the management of new and increasing levels of investment in India’s airport infrastructure.

CORE proposed a grant in the amount of $300,000 to finance the cost of the proposed orientation visits/study tours.

3.  Training and Capacity Building for ATC Operations and the Training Academy in India

The air traffic control (ATC) is one of the most important components of the modern aviation sector.  It is crucial that the any aviation traffic management entity ensure the availability of highly trained air traffic controllers, who ensure safe, orderly and expeditious flow of air traffic, and prevent collisions or other incidences involving aircrafts.  Currently there are approximately 500 air traffic controllers in India, and the Airport Authority of India (AAI) has projected that this number will be at least doubled by the year 2010.  The air traffic controllers in India are trained at the AAI Training Academy which is equipped with radar and aerodrome simulators that need upgrade.  The growing airport infrastructure and increasing air traffic in India require increasing the number of newly trained air traffic controllers as well as upgrading the skills of the currently employed controllers.  In addition, AAI is also faced with the urgent need to modernize its ATC equipment and facilities.  AAI has proposed to conduct a training program for Indian air traffic controllers, and develop a plan for the upgrading and modernization of its ATC Training Academy.  The training program will be provided to air traffic controllers as well as to air navigation and communications personnel.  It will be conducted in the U.S. and include a wide variety of air traffic control, air navigation and air communications topics related to modern ATC and navigation systems, control tower equipment operations, cockpits of the new generation of aircrafts, radar simulation, and operational procedures.  This training could be organized through the Federal Aviation Administration (FAA) or could be competitively procured as many U.S. firms provide this training routinely.  This request from AAI meets all of USTDA’s criteria for funding and, therefore, CORE is recommending that USTDA consider providing funding to facilitate this training.

CORE proposed a grant in the amount of $534,000 to finance the cost of the proposed training and technical assistance.

4. Feasibility Study to Develop and Modernize Air Traffic Control Facilities in India

In accordance with the Open Skies Aviation Agreement signed between the United States and India on April 14, 2005, the United States has committed to help India improve its transportation infrastructure which includes the aviation sector as the highest priority.  One of the focus areas within the aviation sector is air traffic control (ATC).  According to AAI, only 67 Indian airports are currently equipped with the Very High Frequency Omni Range (VOR) basic navigation systems and Distance Measuring Equipment (DME); 31 airports are equipped with the Instrument Landing Systems (ILS); and only 8 airports are equipped with the primary and secondary radars.  It is abundantly clear that Indian airports and en route area control centers (ACCs) need to install new ATC systems and navigation equipment to replace inadequate or obsolete equipment and also need to improve the existing maintenance procedures to comply with internationally accepted standards.  Therefore, CORE is proposing that USTDA provide funding for a feasibility study for the design of a modern program for the operations and maintenance of the ATC and navigation systems throughout India.  This program will include both capacity building of the ATC maintenance facilities personnel and the development of an investment program for the introduction of new generation technology and systems into India’s ATC operations.  Additionally, the FS will provide financial analysis of the project and recommend creative financing options. 

CORE proposed a grant in the amount of $400,000 to finance the cost of this feasibility study.

The total proposed funding for the four grants amounts to $2,234,000.  USTDA and the Government of India are now in discussions with respect to these grants that will help the growing aviation sector priorities in the country.

U.S. Trade and Development Agency Multi-Sector Definitional Mission to Haiti

In February 2005, CORE performed a Multi-Sector Definitional Mission to Haiti to identify projects of interest that would benefit from targeted assistance from the U.S. Trade and Development Agency (USTDA). Mr. Vinod Shrivastava and Ms. Victoria Racz from CORE were joined by Mr. Keith Eischeid of USTDA to conduct meetings with a variety of stakeholders in the Haitian public and private sectors as well as with donors, such as the Inter-American Development Bank.

Haiti 's critical infrastructure needs, coupled with the momentum approaching the democratic elections scheduled to take place in the near future, provide an environment that would greatly benefit from the types of targeted assistance that USTDA provides. The CORE DM Team assessed a variety of proposals aimed at improving the infrastructure and investment climate and provided recommendations to USTDA as to where their assistance would be best utilized.

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