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RUEHPW RUEHROV RUEHVK RUEHYG
DE RUEHAH #0201/01 0391033
ZNR UUUUU ZZH
P 081033Z FEB 08
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 0237
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UNCLAS SECTION 01 OF 02 ASHGABAT 000201 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/CEN 
 
E.O. 12958: N/A 
TAGS: PGOV EAGR ECON SOCI TX
 
SUBJECT:  TURKMENISTAN:  PRESIDENT REITERATES IMPORTANCE OF RURAL 
DEVELOPMENT 
 
REF:  ASHGABAT 0181 
 
¶1.  (U) Sensitive but unclassified.  Not for public Internet. 
 
¶2.  (SBU) SUMMARY:  At his February 2 Cabinet of Ministers meeting, 
President Berdimuhamedov reiterated his determination to improve 
life in Turkmenistan's remote rural regions, requiring relevant 
cabinet members to report on progress to date in implementing the 
rural development plan.  The president returned decision-making 
responsibility (but not budget-approving authority) for rural 
development to the provincial governments and urged more 
coordination between the central and regional governments in 
identifying and delivering the needs of people on the periphery. 
This is a significant reversal of the decision last July to move 
budget and decision-making authority to the center, and -- while 
probably motivated by the president's frustration at the slow pace 
of implementation -- it has the collateral result of promoting 
greater local self-governance.  END SUMMARY. 
 
NATIONAL PROGRAM 
 
¶3.  (SBU) During an extended meeting of the Cabinet of Ministers on 
February 2, the president focused largely on his new "National 
Program of Reform of Social/Living Conditions of Populations of 
Villages, Towns, Cities, Districts, and District Centers through 
2020."   (NOTE:  This program is directed toward improving social 
and living conditions in Turkmenistan's marginalized rural areas. 
END NOTE.)  As program chairman, Berdimuhamedov ordered his 
ministers and regional governors to identify strategies and actions 
how to improve rural living as a team.  He said that "as a president 
elected by people, I will not let anyone hinder the realization of 
this program."  Berdimuhamedov urged municipal leaders to submit 
proposals for the construction of schools, kindergartens, and 
hospitals in their respective districts and provinces and urged all 
cabinet members to work harder to attract foreign construction 
companies to build these facilities. 
 
CONCRETE PROJECTS AND $$$ 
 
¶4.  (SBU) Five ministers reported on their agencies' plans to 
promote rural development: 
 
-- Minister of Construction and Construction Materials Shamuhammet 
Durdyliyev reported that 41% of the capital investment for social 
development and improvement of engineering infrastructure was 
allocated to his ministry.  The Ministry will use this capital to 
construct a total of 365,000 square meters of housing in rural areas 
in 2008. 
 
-- Minister of Energy and Industry Gurbannur Annaveliyev reported 
that the government allocated 11,184.7 billion manats (approximately 
$1.86 million at the official exchange rate) for construction of new 
power transmission lines and refurbishment of existing lines.  The 
Ministry plans to spend 1,035.4 billion manats ($173,000) in 2008. 
 
-- Chairman of "TurkmenAvtoYallary" (Turkmen Motor Roads) Ashyr 
Sarybayev discussed upcoming road construction projects.  This state 
concern will build and reconstruct roads and highways of a total 
length of 1,841 kilometers.  Plans for these roads include green 
zones, street lights, and bus stops.  (NOTE:  The head of the 
district division of this company said that a hefty 17 billion 
manats (about $2.8 million) had been allocated for his district in 
Dashoguz province.  END NOTE.) 
 
-- Chairman of TurkmenGaz (Turkmen Gas) Yagshygeldi Kakayev reported 
the state concern's plans to lay 12,806.2 kilometers of gas 
pipelines in rural areas.  TurkmenGaz plans to lay 9,337.5 
kilometers of pipelines by 2010.  In addition, Kakayev indicated, 
TurkmenGaz has already purchased $39.6 million worth of pipes. 
 
-- Minister of Communications Resulberdi Hojagurbanov reported the 
government allocated almost 300 billion manats (about $50 million) 
to his ministry for high-quality communications systems, including 
 
ASHGABAT 00000201  002 OF 002 
 
 
television and radio broadcasting. 
 
DECREES GIVE PROVINCES DECISION-MAKING RESPONSIBILITY 
 
¶5.  (SBU) President Berdimuhamedov, who is also the Chairman of the 
Halk Maslahaty (People's Council), signed decrees upgrading the 
status of Ashgabat's Archabil district; the municipalities of Tejen, 
Serdar, and Kunya Urgench; and the settlements of Anau, Baharly, 
Geokdepe, and Gazachak.  Under these decrees, these upgraded 
settlements and municipalities will have the same government 
structures as cities.  Berdumuhamedov also signed decrees splitting 
the Ministry of Economy and Finance into two separate ministries -- 
a Ministry of Finance and a Ministry of Economy and Development 
(reftel) -- and giving decision-making responsibility (but not 
budget-approving authority) back to the provincial governments for 
construction, new roads, and laying of gas pipelines and electrical 
lines within their provinces.  (COMMENT:  This is a significant 
reversal of the decision last July to move budget and 
decision-making authority from provincial governments to the Center. 
 END COMMENT.) 
 
¶6.  (SBU) COMMENT: For Turkmenistan's rural citizens, who were badly 
neglected under President Niyazov, Berdimuhamedov's new program 
represents a sign of consideration, respect, and fair treatment. 
While Berdimuhamedov has put rural development high on his list of 
priorities, he has been growing increasingly impatient with the slow 
pace of implementation.  It was probably this frustration, more than 
any other consideration, that led to his decision to return 
decision-making authority to the provincial governments.  However, 
by giving more power to local authorities, who now can draft their 
own budgets based on local needs, and provide those budgets for 
consideration to central authorities, this move reflects a positive 
step forward in empowering local self-governance.  END COMMENT. 
 
HOAGLAND