This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 05 ALMATY 001719 
 
SIPDIS 
 
TASHKENT FOR EPUTNAM 
 
E.O. 12958: N/A 
TAGS: ECON SENV ENRG EPET KZ ECONOMIC
SUBJECT: KAZAKHSTAN ENVIRONMENTAL UPDATE, APRIL 
 
¶1.   Summary:  This information is drawn primarily from the 
Kazakhstani press and has not been verified.  The opinions 
expressed in this report, therefore, should not be interpreted as 
official positions and/or policy of the U.S. Government. 
 
-- Karagachaganak Petroleum Operation Fined for Gas Flaring 
-- Kazakhstan, China Agree on Joint Use of Transborder Rivers 
-- Kazakhstan Yet to Receive Caviar Export Quota 
-- New Environmental Minister Appointed 
-- New Deputy Environmental Minister Appointed 
-- President Orders Tightening of Bird Flu Prevention Measures 
-- World Bank Pleased with Aral Sea Project Results 
-- Third Basin Council To Be Founded in Kazakhstan 
-- National Plan on IMWR to Be Completed This Year 
-- Kazakhstani Poultry to Be Vaccinated Soon 
-- TCO Fined 732 Million Tenge for Environmental Pollution 
-- World Bird Flu Conference to Be Held in Kazakhstan, June 12-13 
-- Avalanche Kills One Near Almaty 
-- Kazakhstani Premier Urges Adhesion to Nuclear Safety Convention 
-- Kazakhstani National Nuclear Center Director Appointed 
-- Kazakhstani Government to Consider Earth Remote Sensing 
Satellite 
-- Pavlodar Oblast Faces Ecological Catastrophe 
-- Khrunichev Space Center Confirms June 8 Launch of KazSat-1 
-- Kazakhstan, Russia Sign New Accords 
-- Kazakhstan Suggests Changing Baikonur Agreements 
-- High-Level Conference on Environmental Protection Issues in 
Almaty 
-- Parliament to Review Ecological Code Draft in June 
 
 
Karagachaganak Petroleum Operating (KPO) Fined for Gas Flaring 
--------------------------------------------- ----------------- 
 
¶1. An inspection of KPO by the Environmental Procurator's Office 
revealed that KPO's atmospheric emissions exceeded allowable levels 
and that the company had failed to fulfill its obligations to 
reduce gas flaring as stipulated by the Basic Production Sharing 
Agreement (BPSA). Furthermore, the inspection concluded that 
industrial and consumption waste had been misplaced. In the last 
three years, the volume of flared gas has sharply increased, 
totaling 145 million cubic meters in late 2005 compared with 90 
million in 2003. Subsequently, the Environmental Procurator's 
Office fined KPO 53 million tenge ($424,000) for violating 
environmental legislation.  KPO insists that the Environmental 
Procurator's Office's claims were unfounded. According to the 
company, a set of new regulations were recently issued to permit 
gas flaring after obtaining a license. KPO lawyers claim that the 
company had obtained the proper license to flare gas. 
(www.gazeta.kz, April 12, 2006) 
 
 
Kazakhstan, China Agree on Joint Use of Transborder Rivers 
--------------------------------------------- ------------- 
 
¶2. During an April 11-13, 2006 official visit to China by 
Kazakhstani Foreign Minister Kasymzhomart Tokayev, both sides 
reached an agreement on sharing the water resources of the trans- 
border rivers Irtysh and Ili. In a news conference in Astana on 
April 17, Yerzhan Ashykbayev, an official representative of the 
Ministry of Foreign Affairs, said, "the Chinese have reassured us 
that the usage of the water resources would take into account the 
interests of both countries, and that the ecological balance would 
be preserved." For many years Astana has been concerned about 
Chinese plans to build dams diverting water from the Irtysh River 
for irrigation purposes, which they fear would cause devastating 
water shortages in three wheat-growing regions down-river in 
Kazakhstan. (Interfax-Kazakhstan, Izvestiya -Kazakhstan, April 17) 
 
 
Kazakhstan Yet to Receive Caviar Export Quota 
--------------------------------------------- - 
 
¶3. Kazakhstan, Russia, Uzbekistan and Turkmenistan have not yet 
received their respective caviar export quotas, according to an 
announced by the press service of the Geneva Convention on 
International Trade by Endangered Species (CITES). According to 
CITES experts, reports from the four countries do not reflect the 
reduction of sturgeon resources. (Caspionet, April 17, 2006) 
 
 
New Environmental Minister Appointed 
------------------------------------ 
 
¶4. By Presidential Decree, Nurlan Iskakov, 46, was appointed 
Minister of the Environment on April 3, 2006.  Prior to this 
appointment, Iskakov, Doctor of Economic Sciences, served as Vice 
Minister of the Environment and Head of the Department for State 
Control and Organizational Work in the Presidential Administration. 
(Kazakhstanskaya Pravda, April 4, 2006) 
 
 
New Deputy Environmental Minister Appointed 
------------------------------------------- 
 
¶5. Alzhan Braliev was appointed Deputy Minister of the Environment 
on April 17, 2006.  Braliev, 31, was Deputy Chairman of the State 
Statistics Agency from July 2004 until this appointment. (Interfax- 
Kazakhstan, April 14, 2006) 
 
 
President Orders Tightening of Bird Flu Prevention Measures 
--------------------------------------------- -------------- 
 
¶6. At an April 14 meeting, President Nazarbayev ordered regional 
governors to strengthen preventive measures against the spread of 
bird flu and improve coordination between the Ministry of Health, 
Ministry of Emergency Situations and other agencies. Nazarbayev 
said, "It is essential to check the levels of protection and 
diagnosis, and by no means conceal cases of bird flu." (Interfax- 
Kazakhstan, April 14, 2006) 
 
 
World Bank Pleased with Aral Sea Project Results 
--------------------------------------------- --- 
 
¶7. World Bank experts have expressed satisfaction with the results 
of the project aimed at restoring the Northern part of the Aral 
Sea. According to project manager Bulat Utkelov, the water level in 
the Small Aral has already reached the upper part of the Kok-Aral 
dam, though it was projected to take five years. Now the World Bank 
plans to implement the second phase of the project to raise the 
efficiency of land irrigation by extending a system of canals to 
the town of Aralsk and restoring fish resources. By 1995, the sea 
had lost 75% of its volume and the water level had fallen by 19 
meters. Over the last 30 years, the radius of the sea has reduced 
to 150 km resulting in 30,000 square km of new deserts around the 
sea. (Interfax-Kazakhstan, April 19, 2006) 
 
 
Third Basin Council to Be Founded in Kazakhstan 
--------------------------------------------- --- 
 
¶8. A representative from the Shu-Talas Basin Water Economy 
Department announced on April 20 that the Third Basin Council (BC) 
will be founded at a meeting in Taraz. The Committee for Water 
Resources of the Ministry of Agriculture and the Shu-Talas Basin 
Water Economy Department initiated the meeting with the support of 
a UNDP project to develop a National Plan for the integrated use of 
water resources in Kazakhstan. The goal of the meeting is to 
discuss organizational issues and the role of the council in the 
Shu-Talas basin. Kazakhstan is the first Central Asian state to 
have established BCs for conducting dialogue between water users 
and water economy management agencies. Originally, BCs were created 
to raise the efficiency of water resource management in Kazakhstan 
and there are currently two basin councils: Balkhash-Alakol and 
Nura-Sarysu. (Kazakhstan Today, April 20, 2006) 
 
 
National Plan on IMWR to Be Completed This Year 
--------------------------------------------- -- 
 
¶9. The "Integrated Management of Water Resources" forum (IMWR) 
completed its work in Astana on March 31. The Forum discussed the 
draft national plan on integrated use of water resources and water 
conservation. It also considered Basin Council (BC) development, 
Water Code implementation, development of the Millennium Goals 
Achievement Strategy in water supply and sanitation, and a report 
on access to drinking water.  Forum participants cited insufficient 
financing for water and sewage systems, a lack of control over 
water quality, and outdated sanitary and epidemiological laboratory 
equipment as major concerns. They concluded that to improve water 
resource management, the status of the Committee for Water 
Resources and its territorial branches must be promoted.  The 
establishment of a Ministry of Water Economy was also proposed. 
According to experts, the final version of the bill will be ready 
by mid-year, and the millennium goals achievement strategy by year 
end. (Panorama, March 31, 2006) 
 
 
Kazakhstani Poultry to Be Vaccinated Soon 
----------------------------------------- 
 
¶10. Asylbek Kozhmuratov, head of the Ministry of Agriculture's 
Veterinary Directorate, reported that vaccine supplies for the 
immunization of domestic poultry in the Almaty, Akmola, Eastern 
Kazakhstan, Karaganda, Northern Kazakhstan and Kostanay oblasts 
have arrived and the vaccination of domestic poultry will start 
soon.  The process will begin in the Kurgaldzhy nature reserves and 
around the Balkhash, Zaysan and Alakol lakes--regions where the 
danger of a bird flu pandemic is highest.  Vaccinations in Northern 
Kazakhstan and Pavlodar regions will be carried out along the 
Kazakhstani/Russian border.  Preventive measures against bird flu 
are scheduled to continue until late autumn. (Interfax-Kazakhstan, 
April 10, 2006) 
 
 
TCO Fined 732 Million Tenge for Environmental Pollution 
--------------------------------------------- ---------- 
 
¶11. The Environmental Procurator's Office in Atyrau has fined the 
Tengizchevroil JV (TCO) company 732 million tenge ($5.8 million) 
for environmental pollution following a 2005 inspection that 
revealed numerous ecological violations. TCO's press service stated 
that the claims presented by the procurator's office are the result 
of an erroneous application of the new law on gas utilization. 
According to TCO, the law has been amended twice. The first 
amendment banned gas flares at the deposits; this ban was later 
lifted, provided that subsurface users receive approval from a 
relevant authority. The Kazakhstani government, in cooperation with 
oil companies, amended the law's application allowing companies to 
improve their gas utilization plans legally. TCO, along with other 
companies, had received approval for their gas utilization plans. 
The company claims that its gas flaring in 2005 was done in 
agreement with the government. TCO claims that gas flaring "is a 
technical process mandated by the plant's design, and it cannot 
simply stop flaring gas because it would lead to a serious 
industrial and ecological accident." (Interfax-Kazakhstan, April 
11, 2006) 
 
 
World Bird Flu Conference to Be Held in Kazakhstan, June 12-13 
--------------------------------------------- ----------------- 
 
¶12. An international conference on regional cooperation and 
coordination to tackle the spread of bird flu will be held in 
Almaty on June 12-13, according to a report by the Emergency 
Situations Ministry. The report states that the conference will 
take place within the framework of an agreement signed between the 
Kazakhstani Health Ministry and the Asian Development Bank. 
International organizations such as the World Health Oorganization, 
USAID, UNICEF, the CDC, the European Commission and the World Bank 
will be involved in its organization and financing. Officials from 
Uzbekistan, Kyrgyzstan, Turkmenistan, Tajikistan, Azerbaijan, 
Russia, China, Mongolia, and Afghanistan are expected to 
participate in the conference, while Thai, Philippine, Dutch and US 
experts have also been invited to the conference. (Interfax- 
Kazakhstan, April 10, 2006) 
 
 
Avalanche Kills One Near Almaty 
-------------------------------- 
 
¶13. At least five people were caught in an avalanche in the 
mountains near Almaty that killed one person on Saturday, as 
reported by the Almaty emergency agency. According to the 
department, the avalanche occurred at 13:00 at the Chimbulak 
mountain resort, burring five individuals, including one resort 
employee. The four tourists were able to escape, however the 
employee was killed and his body was later found. (Interfax- 
Kazakhstan, April 10, 2006) 
 
 
Kazakhstani Premier Urges Adhesion to Nuclear Safety Convention 
--------------------------------------------- ------------------ 
 
¶14. Kazakhstani Prime Minister Daniel Akhmetov remarked at a 
governmental meeting on developing nuclear power engineering, that 
Kazakhstan should join the international Convention on Nuclear 
Safety and have a representative on the IAEA's technical committee. 
Meeting participants noted that a program to develop nuclear power 
engineering would be drafted in the next few months, as specialists 
plan to propose a system of technical requirements for nuclear 
power engineering facilities and carry out feasibility studies. The 
Prime Minister also spoke about the need "for carrying out 
additional research with independent experts into the prospects for 
the development of the Mangyshlak Atomic Power Combine, analyzing 
international experience in the construction of atomic power 
stations and training personnel for nuclear power engineering 
positions." (Interfax-Kazakhstan, April 6, 2006) 
 
 
Kazakhstani National Nuclear Center Director Appointed 
--------------------------------------------- --------- 
 
¶15. Kayrat Kadyrzhanov has been appointed the new Director-General 
of the National Nuclear Center (NNC) by order of the Kazakhstani 
Minister of Energy and Mineral Resources.  Kadyrzhanov will also 
continue to head the National Nuclear Center's Institute of Nuclear 
Physics. (Interfax-Kazakhstan, April 5, 2006) 
 
 
Kazakhstani Government to Consider Earth Remote Sensing Satellite 
--------------------------------------------- ------------------- 
 
¶9. According to an April 9 speech by Prime Minister Akhmetov at the 
conference in Tien Shan highland astrophysical observatory, the GOK 
will consider a feasibility study on the construction of a national 
Earth remote sensing satellite. Kazkosmos JSC Board Chairman Serik 
Turzhanov said earlier that Kazakhstan planned to launch four 
communication satellites on its own, as well as four Earth remote- 
sensing satellites in co-operation with Russia by 2012. (Interfax- 
Kazakhstan, April 10, 2006) 
 
 
Pavlodar Oblast Faces Ecological Catastrophe 
-------------------------------------------- 
 
¶16. The Pavlodar oblast is turning into an industrial refuse dump 
and, according to expert estimates, the region is burdened with 
approximately 6 billion tons of waste, mainly post strip mining 
coal materials. However, ecologists have proposed a way to dispose 
of the waste. In the 1980s, scientists developed technology to 
process Ekibastuz coal waste into ceramic tiles and drain tubes. 
The introduction of these technologies would improve the 
environment and help solve social problems by reducing housing 
construction costs. (Kazakhstan-1, April 7, 2006) 
 
 
Khrunichev Space Center Confirms June 8 Launch of KazSat-1 
--------------------------------------------- ------------- 
 
¶17. The Khrunichev Space Center in Russia once again confirmed that 
the launch of the first Kazakhstani satellite KazSat is scheduled 
for June 8. A Proton-K booster will be used for the launch.  KazSat 
is planned to carry 12 Ku transponders for television broadcasts, 
fixed satellite communications and data transmissions.  The 
coverage area includes Kazakhstan, other Central Asian countries, 
as well as Central Russia.  Earlier, Kazakhstani officials said 
that expenses on the satellite's development and launch are 
estimated at $65 million. (Interfax-Kazakhstan, April 5, 2006) 
 
 
Kazakhstan, Russia Sign New Accords 
----------------------------------- 
 
¶18. During his official visit to Russia, President Nazarbayev held 
talks with Vladimir Putin in the Kremlin. At the end of the talks, 
seven documents were signed, including several concerning the orbit 
parameters of the Kazakh KazSat satellite, the use of the fourth 
state central training range, the conditions on using and renting 
the Emba and Saryshagan military ranges and on the 929th air 
training center. (Khabar, April 4, 2006) 
 
 
Kazakhstan Suggests Changing Baikonur Agreements 
--------------------------------------------- ---- 
 
¶19. Kazakhstan intends to amend some of the 40 international 
agreements with Russia on the operation of the Baikonur launching 
site. The issue was discussed at a governmental meeting chaired by 
Prime Minister Akhmetov on April 10. According to experts, part of 
the agreement must be reviewed in connection with Kazakhstan's 
expanded activity at the facility and concern improvements in 
social security, the protection of constitutional rights of 
Kazakhstani citizens living in Baikonur, infrastructure upgrades 
and maintaining ecological safety. (Interfax-Kazakhstan, April 11, 
2006) 
 
 
High-Level Conference on Environmental Protection Issues in Almaty 
--------------------------------------------- ---------------- 
 
¶20. Environmental protection was the main issue discussed in Almaty 
during a two-day, high-level conference on strengthening the union 
between EU and Central Asian states. The expansion of the EU in 
2004 has effectively brought the EU closer to Central Asia.  The EU 
has since expressed interest in all aspects of life in Central 
Asia, including ecological problems, and in particular the problem 
of trans-border rivers. The EU has broad experience in handling 
ecological problems and has shown that such problems cannot be 
solved on a strictly bilateral level. According to David Grant 
Lawrence, Director of EC on Environment Protection, rivers should 
be considered as basin systems and efforts should be made to 
conclude multilateral agreements with all countries involved. He 
said that it is not easy, but without the consent of all parties, 
it is impossible to come to the right decision both on the quality 
and quantity of water. (Astana TV, April 5, 2006) 
 
 
Parliament to Review Ecological Code Draft in June 
--------------------------------------------- ----- 
 
¶21. The draft of the Ecological Code (EC) under development by the 
Environmental Ministry will be considered by parliament in June, 
according to Deputy Environmental Minister Sultangali Kesikbaev. 
The Code will allow domestic environmental legislation to be 
brought in line with international norms. According to the 
executive director of the Health Protection and Ecological Design 
Center, Andrei Krachevskiy, "the Code will make progress in 
reforming the entire environmental protection system and provide 
for enhancing the institute of state ecological expert 
examination." Among other innovative aspects of the Code, 
Krachevskiy cited a single integrated ecological permit as a way of 
simplifying the procedure of obtaining permits for the use of 
environmental assets. The procedure of issuing environmental 
permits will be based on a differentiation of companies into 4 
categories. For the most environmentally hazardous 4th category, 
the permit term is limited to 3 years. (Interfax-Kazakhstan, April 
3, 2006) 
 
ORDWAY