VZCZCXRO7986
PP RUEHAG RUEHAST RUEHBI RUEHCI RUEHDBU RUEHDF RUEHIK RUEHLH RUEHLN
RUEHLZ RUEHNEH RUEHPW RUEHROV RUEHSK RUEHSL RUEHSR RUEHVK RUEHYG
DE RUEHAH #1056 2330834
ZNR UUUUU ZZH
P 210834Z AUG 09
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC 3329
INFO RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUCNCIS/CIS COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHAK/AMEMBASSY ANKARA 5567
RUEHBJ/AMEMBASSY BEIJING 3286
RUEHKO/AMEMBASSY TOKYO 3151
RUEHIT/AMCONSUL ISTANBUL 3810
RUCNDT/USMISSION USUN NEW YORK 1098
RHMCSUU/CDR USCENTCOM MACDILL AFB FL
RUEHVEN/USMISSION USOSCE 3821
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHDC
RUEKJCS/JOINT STAFF WASHDC

UNCLAS ASHGABAT 001056 
 
SENSITIVE 
 
SIPDIS 
 
STATE FOR SCA/CEN; EEB 
 
E.O. 12958: N/A 
TAGS: EFIS ECON ETRD PGOV EINV PBTS SENV TX
SUBJECT:  TURKMENISTAN STILL FLOUNDERING ON STURGEON FARM 
 
¶1.  (U) Sensitive but unclassified.  Not for public Internet. 
 
¶2.  (SBU) SUMMARY: The Turkmen Government is again casting about for 
a private company to build a sturgeon farm that would produce 
sturgeon and ultimately yield black caviar.  The State Fisheries 
Committee announced a tender to this effect in the local media on 
July 23; the tender will close on August 23.  This tender marks the 
third time the GOTX has attempted to reel in companies.  The 
geographical features on Turkmenistan's Caspian coast and the 
Committee's poor efforts to advertise the tender are major obstacles 
to netting strong bids.  END SUMMARY 
 
¶3.  (SBU) Turkmenistan is obligated to contribute to increased 
numbers of sturgeon in the Caspian.  Moreover, Turkmenistan's quota 
of sturgeon it can catch depends on this contribution.   Each year, 
the Caspian littoral states set the catch quotas for each country 
based on each country's contribution to the natural and artificial 
reproduction of sturgeon in the Caspian.  According to a Turkmen 
Government official, Turkmenistan has the lowest quota among the 
littoral states because it does not contribute to sturgeon 
reproduction either naturally or artificially.  At the same time, 
Turkmenistan is the only country among the littoral states that does 
not possess the natural conditions necessary for sturgeon to spawn. 
Sturgeon lay eggs in fresh water and feed in salty water, but 
Turkmenistan's sole river flowing into the Caspian, the Etrek, is 
very shallow, and often dries up in the summer, making it unsuitable 
for egg laying. 
 
¶4.  (SBU) The Turkmen Government is determined to create facilities 
for the production of sturgeon, so that Turkmenistan's catch quota 
can be increased.  In addition to the much-awaited quota increase, 
such facilities will also create possibilities for Turkmenistan to 
produce and export black caviar, which could become a reliable 
source of hard-currency income for the State Fisheries Committee. 
Reportedly, the first tender announcement for a sturgeon farm did 
not attract any strong bidders.  The second tendering process 
resulted in a contract awarded to a Turkish company, which was later 
annulled because the company had not managed to deliver on some 
contractual obligations. 
 
¶5.  (SBU) According to a Turkmen Government official, the absence of 
adequate volumes of fresh water on the Turkmen coast of the Caspian 
Sea is the main hurdle that companies face when  formulating their 
proposals.  As a result, the State Fisheries Committee is likely to 
award the contract to a company that includes in its business 
proposal a plan for increasing volumes of fresh water necessary for 
spawning. 
 
¶6.  (SBU) COMMENT:  The on-going sturgeon tender presents a rare 
opportunity for highly qualified companies to win a Turkmen tender 
on the merits of their expertise rather than through personal 
contacts with government officials.  Despite two unsuccessful 
tenders in the past, the State Fisheries Committee has not improved 
its tender announcement policy and published the latest announcement 
in only one local newspaper and on a government-owned website. 
Given this lack luster approach to attracting bidders, it is 
uncertain whether the Committee will be able to find strong 
candidates the third time around.  END COMMENT. 
 
MILES