VZCZCXRO8784
PP RUEHAG RUEHAST RUEHBI RUEHCI RUEHDF RUEHIK RUEHLH RUEHLN RUEHLZ
RUEHPW RUEHROV RUEHVK RUEHYG
DE RUEHAH #0116/01 0231046
ZNR UUUUU ZZH
P 231046Z JAN 08
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 0126
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUCNCIS/CIS COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHAK/AMEMBASSY ANKARA 3285
RUEHBJ/AMEMBASSY BEIJING 1100
RUEHKO/AMEMBASSY TOKYO 0971
RUEHIT/AMCONSUL ISTANBUL 1540
RUEATRS/DEPT OF TREASURY WASHDC
RHEHNSC/NSC WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RHMFIUU/CDR USCENTCOM MACDILL AFB FL
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RUEKJCS/JOINT STAFF WASHDC
RUEKJCS/SECDEF WASHINGTON DC
RUEHVEN/USMISSION USOSCE 2138

UNCLAS SECTION 01 OF 02 ASHGABAT 000116 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/CEN, EEB 
USAID/W FOR EE/AA 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON EIND SOCI TX
SUBJECT:  TURMENISTAN'S CONSTRUCTION MINISTRY SHOWS 
POTENTIAL FOR ASSISTANCE 
 
REF: A. 07 ASHGABAT 1398 
 
     ¶B. 07 ASHGABAT 0968 
     ¶C. 07 ASHGABAT 1146 
     ¶D. 07 ASHGABAT 1348 
 
¶1.  (U) Sensitive but unclassified.  Not for public Internet. 
 
¶2.  (SBU) SUMMARY:  During a January 7 meeting at 
Turkmenistan's Ministry of Construction and Construction 
Materials Industry, officials representing all departments 
expressed enthusiasm about learning from the U.S. experience, 
especially in the areas of urban planning and construction 
technology.  Officials also want U.S. firms to invest and 
compete in tenders in the planned Avaza Free Tourism Zone on 
the Caspian Sea.  Ministry officials also said they wanted to 
build new mosques with a capacity of 2500 worshippers in each 
of Turkmenistan's major metropolitan areas.  Commerce and 
Treasury Department assistance in moving away from Soviet 
Gosplan-style finance and budgeting and in transparent 
contracting methods would be useful.  END SUMMARY. 
 
RURAL AND PROVINCIAL DEVELOPMENT A PRIORITY 
 
¶3.  (SBU) Acknowledging President Berdimuhamedov's commitment 
to rural development, officials from the Ministry of 
Construction and Construction Materials Industry told EmbOff 
January 7 that construction of buildings used for community 
activities continues apace in all five provinces.  Cultural 
centers, kindergartens, hospitals and maternity centers, 
theaters, and people's council buildings remain a priority, 
but they are also working on plans to build new municipal 
offices, sports facilities, medical offices, and other 
improvements.  Ministry officials also said they wanted to 
build new mosques with a capacity of 2500 worshippers in each 
of Turkmenistan's major metropolitan areas.  (NOTE:  Turkish 
businessman Ahmet Chalik has told the president he will fund 
the building of one such mosque in the northern province of 
Dashoguz (Ref A).  END NOTE.)  The Ministry is also 
constructing two-story dwellings in the countryside that are 
more appropriate in rural areas.  (NOTE:  The president 
subsequently signed a decree on January 11 offering loans to 
build such houses with very favorable terms.  END NOTE.) 
Ministry officials mentioned the development of the Avaza 
Free Tourizm Zone on the Caspian Sea and pushed hard several 
times for U.S. participation in its projects (Ref. B).  Due 
to the planners' continued focus on state -- rather than 
private -- ownership, however, U.S. companies are unlikely to 
participate in these projects, unless we can turn around 
Turkmen officials' thinking. 
 
ASHGABAT CITY 
 
¶4.  (SBU) In July 2007, French construction firm Bouygues 
presented To Berdimuhamedov its concept for a development 
plan for Archabil Avenue, on the largely undeveloped southern 
edge of the capital,  called "Ashgabat City."  According to 
press reports, Ashgabat City would include new structures and 
natural elements such as a television tower, fountains, 
statues of Turkmen historical figures, a lake, a 
200-meter-tall "Altyn Asyr" (Golden Age) skyscraper, 
additional government buildings, a golf course, and more 
apartment blocks.  (NOTE: We had heard previously that 
Berdimuhamedov planned to add statues of Turkmen historical 
figures to city parks and developments - a real departure 
from former president Niyazov, who mostly built monuments to 
himself (Ref. C).   END NOTE.)  Officials at the Ministry of 
Construction, which will oversee the implementation of this 
Epcot Center-like plan, expect Turkmengosproyekt (Turkmen 
State Planning) to complete a prospectus for Ashgabat City 
soon. 
 
 
ASHGABAT 00000116  002 OF 002 
 
 
OTHER PRIORITIES:  INCREASING DOMESTIC PRODUCTION OF 
CONSTRUCTION MATERIALS 
 
¶5.  (SBU) To increase the quality and quantity of 
domestically produced construction materials, the Ministry is 
undertaking a number of projects designed to improve access 
to building materials.  These include constructing a factory 
for cement that contains gas and is lighter, using technology 
available only in Europe and the United States, and building 
a new granite factory with high-quality Italian equipment 
that will be the most advanced granite factory in the region. 
 
¶6.  (SBU) COMMENT:  This meeting with the Ministry of 
Construction was the first in several years, and officials 
attributed their new willingness to meet to President 
Berdimuhamedov's calls for greater cooperation with foreign 
countries and international organizations.  Throughout the 
meeting, ministry officials stressed that they welcomed 
cooperation with the United States, and we believe their 
comments to be genuine.  Areas in which the United States 
could provide technical assistance to the Ministry include 
urban planning, municipal construction codes, and 
construction techniques in earthquake zones.  With more 
demolitions ahead, best practices and proper compensation for 
seizure of real estate holdings could be part of assistance 
on urban planning.  Finally, since construction reportedly 
remains Turkmenistan's most corrupt sector (Ref. D), Commerce 
and Treasury Department assistance in moving away from Soviet 
Gosplan-style finance and budgeting and in transparent 
contracting methods would be useful.  END COMMENT. 
HOAGLAND