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Country Commercial Guides
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V. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT
Best Prospects for Non-Agricultural Goods and Services
The new Cyprus Five-year Development Plan (1999-2003) aims to prepare the Cypriot economy for the world-wide trend towards globalization and further trade liberalization as well as Cyprus' envisaged accession to the EU. The plan takes into account the changes in the external environment that have a decisive effect on small open economies, such as Cyprus; the recent trends and the growth potential of the economy; and its comparative advantages and constraining factors. The main strategic objectives laid out by the plan include achieving the highest possible growth, accelerating harmonization with the EU aquis communautaire; and restructing the economy.
Best prospects for U.S. firms generally center in the services and high technology sectors: computer equipment and data processing services, financial services, environmental protection technology, medical and telecommunications equipment, sewerage treatment plants, and tourism development projects. In addition, opportunities exist for U.S. firms for the supply of equipment for the following ongoing and upcoming projects (the exchange rate used is the 1998 average of CP 1.00 equals USD 1.93):
-- 1. Electrical Power System (ELP).
Construction of the first phase of the Vassiliko 240 MW power station started in 1996. Tenders for the first phase of the project (for USD 69.0 million) were awarded to non-American companies. New tenders for fiber optics, underground cables and heavy fuel oil were issued during 1998. The Electricity Authority will issue tenders during 1999 for the supply of laboratory equipment, switchgears, poles and meters. The approximate value for the new tenders will be about USD 50.0 million.
-------------------------------------------------------- Data Table (USD Million) -------------------------------------------------------- 1998 1999 2000 -------------------------------------------------------- A. Total Market Size 69.0 30.0 30.0 B. Total Local Production 0.0 0.0 0.0 C. Total Exports 0.0 0.0 0.0 D. Total Imports 69.0 30.0 30.0 E. Imports from the U.S. 0.0 N.A. N.A. -------------------------------------------------------- Note: The above statistics are unofficial estimates. -------------------------------------------------------- -- 2. Medical Equipment (MED). A new Nicosia General Hospital (450 beds) will need the latest technology in medical and surgical equipment. The construction and equipment for the hospital will cost about USD 150.0 million over a period of four years beginning end of 1997. Initial tenders for equipment for about USD 50.0 million will be announced over the next two years. It should be noted that U.S. companies have had an excellent track record in the past in government tenders for medical equipment. -------------------------------------------------------- Data Table (USD Million) -------------------------------------------------------- 1998 1999 2000 -------------------------------------------------------- A. Total Market Size 20.0 25.0 35.0 B. Total Local Production 0.0 0.0 0.0 C. Total Exports 0.0 0.0 0.0 D. Total Imports 20.0 25.0 35.0 E. Imports from the U.S. 7.0 12.0 18.0 -------------------------------------------------------- Note: The above statistics are unofficial estimates. -------------------------------------------------------- -- 3. Computers Peripherals (CPT), Computer Software (CSF) and Computer Services (CSV). The government will spend about USD 60.0 million over the next few years for the gradual computerization of all departments and automation of different services. One big tender for the computerization of the Merchant Shipping is being evaluated and another one is expected to be announced soon for the computerization of the Courts Department. The private sector also has a growing appetite for computers and peripherals. U.S. products in this field enjoy a very good reputation in Cyprus and have a market share of almost 50 percent (USD 30.0 million, out of total imports of around USD 68.0 million). -------------------------------------------------------- Data Table (USD Million) -------------------------------------------------------- 1998 1999 2000 -------------------------------------------------------- A. Total Market Size 70.0 80.0 90.0 B. Total Local Production 2.0 2.0 3.0 C. Total Exports 0.0 0.0 0.0 D. Total Imports 68.0 78.0 87.0 E. Imports from the U.S. 30.0 35.0 40.0 -------------------------------------------------------- Note: The above statistics are unofficial estimates. -------------------------------------------------------- -- 4. Telecommunications Equipment (TEL). The Cyprus Telecommunications Authority (CYTA) is planning continued upgrades of the telecommunications network, including procurement and launching of two communications satellites (one for broadcasting and the other for mobile telephones). This will be a regional project, covering areas from Africa to the Mediterranean, the Balkan countries and the Middle East. This is considered Cyprus' biggest telecommunications project ever at about USD 100.0 million. Additionally, it is possible that some aspects of the national telecommunications system may be privatized over time. Once again, U.S. products in this filed have an excellent reputation and dominate the field. -------------------------------------------------------- Data Table (USD Million) -------------------------------------------------------- 1998 1999 2000 -------------------------------------------------------- A. Total Market Size 30.0 40.0 60.0 B. Total Local Production 0.0 0.0 0.0 C. Total Exports 0.0 0.0 0.0 D. Total Imports 30.0 40.0 60.0 E. Imports from the U.S. 10.0 20.0 25.0 -------------------------------------------------------- Note: The above statistics are unofficial estimates. -------------------------------------------------------- -- 5. Pollution Control Equipment (POL). The Sewerage Board of Nicosia will issue tenders this year for the design/engineering of the pumping stations and treatment plants of the Greater Nicosia Sanitary Sewerage System (USD 7.0 million). At a later stage, tenders will be announced for the construction of the sewerage system. The total cost for this project will be USD 170.0 million. Additionally, other municipalities will issue tenders over the next two years for pollution control equipment valued at over USD 5.0 million. The Ministry of Commerce and Industry has also announced that it will provide grants to manufacturers for the establishment of systems for the control of industrial pollution. The Chamber of Commerce is actively recruiting environmental technology firms to come to Cyprus to demonstrate new products/techniques. -------------------------------------------------------- Data Table (USD Million) -------------------------------------------------------- 1998 1999 2000 -------------------------------------------------------- A. Total Market Size 5.0 12.0 50.0 B. Total Local Production 0.0 0.0 0.0 C. Total Exports 0.0 0.0 0.0 D. Total Imports 5.0 12.0 50.0 E. Imports from the U.S. 0.5 7.0 25.0 -------------------------------------------------------- Note: The above statistics are unofficial estimates. -------------------------------------------------------- -- 6. Air Traffic Management Facilities - LEFCO (APG). Tenders were invited for the supply of Air Traffic Management facilities for the new Area Control Center of Nicosia and Larnaca airports. Estimated value is USD 20.0 million. The Government of Cyprus is considering the partial privatization of airports and will invite tenders for international consulting firms to take over the management of the Larnaca and Paphos airports. -------------------------------------------------------- Data Table (USD Million) -------------------------------------------------------- 1998 1999 2000 -------------------------------------------------------- A. Total Market Size 20.0 20.0 20.0 B. Total Local Production 0.0 0.0 0.0 C. Total Exports 0.0 0.0 0.0 D. Total Imports 20.0 20.0 20.0 E. Imports from the U.S. 0.0 20.0 20.0 -------------------------------------------------------- Note: The above statistics are unofficial estimates. -------------------------------------------------------- -- 7. Airport Weather Radar - L-203 (APG) Tenders will be announced by the Civil Aviation Department within 1999 for the supply and installation of Weather Radar at Larnaca Airport. Estimated value is USD 300,000 -------------------------------------------------------- Data Table (USD Million) -------------------------------------------------------- 1998 1999 2000 -------------------------------------------------------- A. Total Market Size 1.0 1.0 1.0 B. Total Local Production 0.0 0.0 0.0 C. Total Exports 0.0 0.0 0.0 D. Total Imports 1.0 1.0 1.0 E. Imports from the U.S. 0.0 0.3 0.3 -------------------------------------------------------- Note: The above statistics are unofficial estimates. -------------------------------------------------------- -- 8. Meteorological Stations (APG) The Government of Cyprus will announce within 1999 tenders for the supply and installation of eight small-to-medium meteorological stations around the island. Estimated value is USD 240,000 -------------------------------------------------------- Data Table (USD Million) -------------------------------------------------------- 1998 1999 2000 -------------------------------------------------------- A. Total Market Size 1.0 1.0 1.0 B. Total Local Production 0.0 0.0 0.0 C. Total Exports 0.0 0.0 0.0 D. Total Imports 1.0 1.0 1.0 E. Imports from the U.S. 0.0 0.5 0.5 -------------------------------------------------------- Note: The above statistics are unofficial estimates. -------------------------------------------------------- -- 9. Aeronautical Information Service (APG) The Civil Aviation Department will announce within 1999 tenders for the supply and installation of the Aeronautical Information Service (AIS). Estimated value is USD 600,000. -------------------------------------------------------- Data Table (USD Million) -------------------------------------------------------- 1998 1999 2000 -------------------------------------------------------- A. Total Market Size 1.0 1.0 1.0 B. Total Local Production 0.0 0.0 0.0 C. Total Exports 0.0 0.0 0.0 D. Total Imports 1.0 1.0 1.0 E. Imports from the U.S. 0.0 0.6 0.6 -------------------------------------------------------- Note: The above statistics are unofficial estimates. -------------------------------------------------------- Best Prospects for Agricultural Products -- 1. Cereals. Up until 1998, cereals were by far the best agricultural U.S. export crop to Cyprus, with annual exports valued at around USD 30.0 million. The interruption of the Export Enhancement Program (EEP), though, has resulted in a drastic drop in the export of U.S. cereals to Cyprus (from USD 33.3 million in 1997 to USD 3.9 million in 1998). -------------------------------------------------------- Data Table (USD Million) -------------------------------------------------------- 1998 1999 2000 -------------------------------------------------------- A. Total Market Size 107.0 113.0 120.0 B. Total Local Production 37.0 38.0 40.0 C. Total Exports 0.0 0.0 0.0 D. Total Imports 70.0 75.0 80.0 E. Imports from the U.S. 3.9 5.0 7.0 -------------------------------------------------------- Note: The above statistics are unofficial estimates. -------------------------------------------------------- -- 2. Animal or Vegetable Oils and Fats, Animal Feeds and Oil Seeds. Other prospects for agricultural exports to Cyprus include animal or vegetable oils and fats, animal feeds and oil seeds. -------------------------------------------------------- Data Table (USD Million) -------------------------------------------------------- 1998 1999 2000 -------------------------------------------------------- A. Total Market Size 64.0 69.0 73.0 B. Total Local Production 46.0 47.0 48.0 C. Total Exports 16.0 18.0 20.0 D. Total Imports 18.0 22.0 25.0 E. Imports from the U.S. 4.0 6.0 8.0 -------------------------------------------------------- Note: The above statistics are unofficial estimates. --------------------------------------------------------
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[end of document] Note* International Copyright, United States Government, 1998 (or other year of first publication). All rights under foreign copyright laws are reserved. All portions of this publication are protected against any type or form of reproduction, communications to the public and the preparation of adaptations, arrangement and alterations outside the United States. U. S. copyright is not asserted under the U.S. Copyright Law, Title17, United States Code.
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