VZCZCXRO9757
PP RUEHAG RUEHAST RUEHBI RUEHCI RUEHDBU RUEHDF RUEHIK RUEHLH RUEHLN
RUEHLZ RUEHPW RUEHROV RUEHVK RUEHYG
DE RUEHAH #1244 3230949
ZNR UUUUU ZZH
P 190949Z NOV 07 ZDK
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 9709
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE PRIORITY
RUCNCIS/CIS COLLECTIVE PRIORITY
RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RUEHAK/AMEMBASSY ANKARA PRIORITY 2983
RUEHBJ/AMEMBASSY BEIJING PRIORITY 0801
RUEHKO/AMEMBASSY TOKYO PRIORITY 0675
RUEHIT/AMCONSUL ISTANBUL PRIORITY 1254
RHMFIUU/CDR USCENTCOM MACDILL AFB FL PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RHEBAAA/DEPT OF ENERGY WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RHEFDIA/DIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RUEHBS/USEU BRUSSELS PRIORITY
RUEHVEN/USMISSION USOSCE PRIORITY 1901
RUCNDT/USMISSION USUN NEW YORK PRIORITY 0626

UNCLAS ASHGABAT 001244 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/CEN, EEB 
PLEASE PASS TO USTDA DAN STEIN 
DOE FOR EKIMOFF/THOMPSON 
 
E.O. 12958: N/A 
TAGS: PREL OGIV PREL ECON ENRG EINV TK TX
SUBJECT:  TURKMENISTAN FAVORS GENERAL ELECTRIC, DISTANCES 
ITSELF FROM CHALIK ENERGY 
 
REF: A. ASHGABAT 1126 
     ¶B. ASHGABAT 1014 
 
¶1.  (U)  Sensitive but unclassified.  Not for public Internet. 
 
¶2.  (SBU) SUMMARY:  President Berdimuhamedov wants General 
Electric to participate in Turkmenistan,s energy sector but 
without its current partner Chalik Energy, clear evidence 
that the president is continuing to distance himself from 
Ahmet Chalik, a favorite of former President Niyazov.  END 
SUMMARY. 
 
¶3.  (U) Charge met November 17 with General Electric 
Infrastructure/Energy President for Central and Eastern 
Europe, Russia, and the CIS Rod Christie and two of his 
colleagues.  They had just finished meeting with President 
Berdimuhamedov and were waiting to see Deputy Prime Minister 
for Oil and Gas Tagiyev.  GE has been working in Turkmenistan 
since 1995 and in partnership with Chalik Energy since 2001. 
 
¶4.  (SBU)  Berdimuhamedov told Christie he wants GE 
 
-- to start servicing directly the equipment it installed as 
a sub-contractor to Chalik Energy and start providing spares 
and replacement parts because, under Chalik Energy, it 
hasn,t been properly maintained and serviced; 
 
-- to establish a training program for Turkmenistanis so that 
they learn how to take care of high-tech equipment; 
 
-- to know Turkmenistan is placing high priority on 
electricity generation, including solar energy, and 
telecommunications; and 
 
-- to have a direct relationship with the government of 
Turkmenistan rather than work through partnership with 
another company. 
 
¶5.  (SBU) Christie said the last point is significant because 
it is clear evidence Berdimuhamedov wants to limit the role 
of Chalik Energy in Turkmenistan (reftels).  Christie 
commented this is awkward because Chalik Energy has been a 
good partner, but he will be fully transparent with Ahmet 
Chalik, who, in any case, already knows the score and is 
working to diversify into Russia. 
 
¶6.  (SBU) Christie said GE is participating in the tender for 
two major gas turbines for electricity production near 
Ashgabat, and will submit proposals for a similar project at 
Turkmenbashy and its neighboring Avaza Free Tourist Zone.  GE 
will also consider Berdimuhamedov,s request for solar-power 
generation at Avaza.  Christie commented solar power is 
becoming "fashionable" in Central Asia, even though it,s 
hugely expensive. 
 
¶7.  (SBU) COMMENT:  This is good news for General Electric, 
bad news for Chalik Energy.  The Turkish parent company 
Chalik Holding has had three branches in Turkmenistan: 
Chalik Textiles, Chalik Construction, and Chalik Energy. 
Only Chalik Textiles has so far not suffered a sharp decline. 
 Berdimuhamedov is continuing to distance himself from Chalik 
Holding CEO Ahmet Chalik, who was a favorite confidante of 
former President Niyazov.  END COMMENT. 
HOAGLAND