VZCZCXRO4273
PP RUEHAG RUEHAST RUEHBI RUEHCI RUEHDBU RUEHDF RUEHIK RUEHLH RUEHLN
RUEHLZ RUEHPW RUEHROV RUEHVK RUEHYG
DE RUEHAH #1064/01 2751111
ZNR UUUUU ZZH
P 021111Z OCT 07
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 9475
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUCNCIS/CIS COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHAK/AMEMBASSY ANKARA 2824
RUEHBJ/AMEMBASSY BEIJING 0645
RUEHKO/AMEMBASSY TOKYO 0521
RUEHIT/AMCONSUL ISTANBUL 1097
RHEHNSC/NSC WASHDC
RHMFIUU/CDR USCENTCOM MACDILL AFB FL
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RUEKJCS/JOINT STAFF WASHDC
RUEKJCS/SECDEF WASHINGTON DC
RUEHVEN/USMISSION USOSCE 1798
RUCNDT/USMISSION USUN NEW YORK 0584

UNCLAS SECTION 01 OF 02 ASHGABAT 001064 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/CEN, EEB 
 
E.O. 12958: N/A 
TAGS: PGOV ECON EIND SOCI TU TX
SUBJECT: POLIMEKS EXECUTIVE WANTS COLLABORATION WITH U.S. 
FIRMS, BUT DOWN ON TURKMENISTAN 
 
REF: A. REF: A. ASHGABAT 968 
 
     ¶B. B. ASHGABAT 970 
     ¶C. C. ASHGABAT 1039 
 
¶1.  (U) Sensitive but unclassified.  Not for public Internet. 
 
¶2.  (SBU) SUMMARY:  On September 27, a senior Turkish 
construction company official outlined the difficulties of 
living and doing business in Turkmenistan, such as police 
harassment and lack of Internet access, and how it makes 
finding expatriate employees difficult.  He explained ongoing 
and new projects, and expressed interest in collaboration on 
turnkey projects with U.S. firms.  He claimed that 
construction is not a profitable business for the many 
Turkish companies that have been doing business here since 
Turkmenistan's independence, but they come because it is the 
right thing to do.  In our view, however, the companies would 
not have been here for over a decade simply to "do good." 
END SUMMARY. 
 
LIFE IN TURKMENISTAN:  EVEN HARDER IF YOU'RE NOT A DIPLOMAT... 
 
¶3.  (SBU) Caner Demir, Architect and Deputy Planning Manager 
of the Turkish construction firm Polimeks, noted his concerns 
about inconveniences of life in Turkmenistan during a 
September 27 introductory meeting with econoff.  Stating that 
it can be difficult to find Turks willing to live and work in 
Turkmenistan, he said that U.S. private industry might also 
have trouble convincing employees to come here.  Noting 
Polimeks' lack of Internet in the office and concerns about 
education, Demir was somewhat discouraged about 
Berdimukhamedov's presidency.  He asked if the U.S. Embassy 
heard about a new rule imposed on Polimeks employees 
prohibiting single men from living alone, and an "unwritten 
rule" that no one is allowed to be on the street after 11 
p.m. (COMMENT: The 11:00pm curfew is widely known, but this 
was the first time we had heard of the supposed ban on single 
men living alone.  END COMMENT.)  Demir returned to the topic 
of police harassment throughout the meeting, clearly an issue 
of concern to him.  (NOTE:  Demir is married to a Turkish 
Embassy employee and, therefore, is personally protected from 
hassles.  END NOTE.) 
 
...BUT BUSINESS IS MOVING ALONG 
 
¶4.  (SBU) Demir noted that Polimeks is working on two new 
projects:  a cottonseed oil processing plant in Ashgabat, and 
a water purification plant in Turkmenbashy.  He declined to 
provide details on two additional projects that he expected 
Berdimukhamedov to approve after he returned from New York. 
Demir does not want to participate in Avaza projects (reftels 
A, B), because he does "not believe in it."  He believed, 
however, Polimeks management may want to submit bids for 
building projects there, in spite of his views. 
 
RUSSIA NOT A THREAT TO BUSINESS (YET) 
 
¶5.  (SBU) Demir highlighted two of Polimeks' 17 ongoing 
projects, both located next to the Ministry of Healthcare:  a 
high-rise oncology center and a new medical university.  He 
said Polimeks wants to collaborate with U.S. firms on turnkey 
projects in the healthcare industry, and asked for a list of 
U.S. firms currently operating in Turkmenistan.  He also said 
that Russian and German companies recently participated in a 
new tender for a turnkey hospital project.  He did not feel 
threatened by Russian construction firms at present because 
of the low quality of their work, but worried they might soon 
catch up as their workforce becomes more skilled.  He 
credited the increase in skills in the Russian construction 
workforce to the influence and training of Turkish firms that 
have been operating in Russia. 
 
¶6.  (SBU) Demir claimed his manager and other Turks involved 
 
ASHGABAT 00001064  002 OF 002 
 
 
in construction in Turkmenistan arrived with altruistic 
ideals.  Profit margins are not high compared to similar 
projects in Turkey.  "First you come to do some good, then 
you can make some money," he added.  Noting that 
Berdimuhamedov and Turkey's President Gul have yet to 
exchange visits, he said he did not feel that the close 
business relations have fostered better political relations. 
 
¶7.  (SBU) Demir complained prominent French construction 
company Bouygues doesn't "talk to anyone" and is a "black 
box."  Demir felt strongly that Bouygues was trading building 
projects for oil and gas, and suggested the company was not a 
private entity but somehow part of the French government. 
 
¶8.  (SBU) COMMENT:  While Demir made some good points, it was 
clear he held an over-inflated view of the role of Turkish 
companies here and the benefits they bring to the country. 
In this meeting, he also showed a side of the fierce 
competition that exists between the few foreign construction 
companies that operate here.  His comments on Avaza, like 
those of other international business entities, reinforce the 
notion that few companies are interested in this pet project 
before the investment climate warms and a clearer picture of 
the project appears.  END COMMENT. 
HOAGLAND