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ZNR UUUUU ZZH
R 290326Z APR 08
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC 0693
INFO RUCNCIS/CIS COLLECTIVE
RUCNOSC/OSCE POST COLLECTIVE
RUEHLM/AMEMBASSY COLOMBO 0534
RUEHKA/AMEMBASSY DHAKA 0554
RUEHIL/AMEMBASSY ISLAMABAD 2243
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RUEHBI/AMCONSUL MUMBAI 0192
RUEHPW/AMCONSUL PESHAWAR 0505
RHMFIUU/CDR USCENTCOM MACDILL AFB FL
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHINGTON DC//DHO-2/REA/NMJIC-J2//
RHEHNSC/NSC WASHDC
RUETIAA/NSA FORT MEADE MD
RUEKJCS/JOINT STAFF WASHINGTON DC//J5/RUE//
RUEKJCS/SECDEF WASHINGTON DC

UNCLAS SECTION 01 OF 03 ASHGABAT 000533 
 
SIPDIS 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR SCA/CEN, EUR/ACE, EEB 
AID/W FOR EE/EA 
 
E.O. 12958: N/A 
TAGS: PGOV PREL EAID ECON ENRG TX
SUBJECT:  USAID ECONOMIC GROWTH PROGRAMS WARMLY RECEIVED 
 
REF: A. ASHGABAT 0469 
 
 ¶B. ASHAGBAT 0040 
 ¶C. ASHAGBAT 0248 
 
ASHGABAT 00000533  001.2 OF 003 
 
 
¶1.  (U) Sensitive but unclassified.  Not for public Internet. 
 
¶2.  (SBU) SUMMARY: April 16-22, a delegation led by USAID/CAR 
Economic Growth Office Director met with major Turkmen counterparts 
to discuss the status of USAID's Economic Growth programs in 
Turkmenistan.  The Ministry of Energy and Industry indicated that it 
is ready to expand its participation in the next generation of 
USAID's Regional Energy Markets Assistance Program.  The Deputy 
Chairwoman of the Supreme Council on Science and Technology (SCST) 
voiced support for recognizing the USAID-developed Russian language 
Certified Accounting Practitioner (CAP) and Certified International 
Professional Accountant (CIPA) curriculums and asked for expanded 
USAID assistance in training of trainers and curriculum reform in 
Turkmenistan's universities.  During this period, USAID's new 
Economic Reforms for Enhancing Competitiveness (EREC) organized a 
seminar on project management methodology and development of 
performance indicators for the Institute of Strategic Planning and 
Economic Development (ISPED) and participants from the Supreme 
Regulatory (Audit) Chamber travelled to Kazakhstan at USAID's 
invitation to learn about the functions of Kazakhstan's State 
Accounts Committee.  Comments by the Mary provincial governor 
indicated that ongoing USAID advocacy for long-time partner in the 
agricultural sector, the Ilkinjiler farmers' association, has had a 
positive effect on its reputation with local officials.  Overall, 
the discussions demonstrated increased interest in and commitment to 
joint development priorities from Turkmen counterparts.  They also 
highlight the need for additional resources at this critical 
juncture in Turkmenistan's development.  END SUMMARY. 
 
MINISTRY OF ENERGY READY FOR REMAP II 
 
¶3.  (U) On April 16, Deputy Minister of Energy and Industry 
Orazgulyev recognized USAID's assistance in building a national 
transmission model and thanked the delegation for supporting the 
Ministry's participation in the April 21 Energy Regulators Regional 
Association workshop.  During working meetings on April 17-18 with 
USAID, the Ministry strongly requested additional support in the 
areas of analysis of generation and transmission costs, assessment 
of regional transmission system tele-metering and control system 
guidelines, education and training on regional energy market 
development, and assistance on transmission tariff methodologies. 
Future USAID assistance in these areas via the follow-on activity to 
the current Regional Energy Market Assistance Program (REMAP), 
currently under development, combined with ongoing implementation of 
the Afghan and Turkmen commitments outlined in the Protocol of the 
Joint Meeting of Technical Experts of the Ministry of Energy and 
Water of the Islamic Republic of Afghanistan and the Ministry of 
Energy and Industry of Turkmenistan on April 9, 2008 (Ref. A), will 
lay the foundation for sustainable electricity exports to 
Afghanistan. 
 
SUPREME REGULATORY CHAMBER TRAVESL TO KAZAKHSTAN 
 
¶4.  (U) From April 21-25, USAID supported a study tour by five 
representatives of the Supreme Regulatory Chamber of Turkmenistan to 
the Accounts Committee of the Republic of Kazakhstan.  Led by SRC 
Deputy Chairman Velmurad Dovletov, this delegation's goal during the 
intensive one week visit was to learn about Kazakhstan's experience 
-- also supported by USAID -- in building its human and 
institutional capacity.  Specific presentations and discussions 
covered a range of issues, including: 
-- General overview of the Organization and Conduct of Audit by the 
 
ASHGABAT 00000533  002.2 OF 003 
 
 
Accounts Committee; 
-- Standards and Procedures in the Conduct of External Audits; 
-- Issues in External Audit of Tax and other Revenue Sources to the 
Budget; 
-- Experience of the Accounts Committee in Conduct of Financial 
Audits of Budget Organizations; 
-- Experience of the Accounts Committee in Conduct of Performance 
Audits; 
-- Strategic Planning for Activities of the Accounts Committee; 
-- Accounts Committee's Experience Organizing International 
Cooperation; 
-- Staff Development at the Accounts Committee; 
-- Organization of the Administrative and Legal Departments of the 
Accounts Committee. 
In addition, the delegation met with the Chairman of the 
Parliamentary Finance and Budget Committee, and observed a regular 
session of the Accounts Committee to Review Audit Results.  Based on 
the results of this experience, the Supreme Regulatory Chamber will 
identify key areas for possible technical assistance from USAID to 
develop its human and institutional capacity for introduction of 
international best practices as a supreme audit institution. 
 
CAPACITY-BUILDING AT ISPED STARTS 
 
¶5.  (U) In response to a mid-March request from Institute of 
Strategic Planning and Economic Development (ISPED) Director 
Ashirkuli Kurbankuliyev for support in developing the National 
Development Strategy to 2030, USAID quickly organized a set of three 
workshops during the second half of April.  Specific areas to be 
covered by USAID's implementing partner on the Economic Reforms for 
Enhancing Competitiveness (EREC) include: 
-- Project management methodology and development of robust sector 
performance indicators to incorporate into the strategy (April 
15-17); 
-- Macroeconomic modeling - Fiscal policy, Macro policy and Monetary 
policy - for all staff of Institute of Strategic Planning and 
Economic Development, with participation of staff from the Central 
Bank of Turkmenistan (April 22 - 29): and 
-- Private sector development, including the Role of public-private 
dialogue and partnerships; using the Balanced Scorecard to drive 
improvement; Global and Business Competitiveness Improvements; 
Financial Market Development and Privatization; Corporate Governance 
and Microfinance (April 27 - May 2). 
These seminars will help strengthen the capacity of a new 
institution tasked with overall development strategy and longer-term 
support could integrate Institute of Strategic Planning and Economic 
Development into the medium-term budget process, further promoting 
economic reforms to build competitiveness. 
 
MARY GOVERNOR WARMLY WELCOMES DELEGATION 
 
¶6.  (U) In an April 19 meeting with the delegation, Mary Governor 
Kakageldi Gurbanov complemented USAID's work in the area of 
agricultural development.  In a change of attitude from USAID 
Mission Director Bill Frej's visit in December 2007 (Ref. B), 
Gurbanov stated that USAID's productivity enhancing work with the 
Zaman Samat community group and the Ilkinjiler farmers' cooperative 
should be expanded.  The Governor emphasized his willingness to 
cooperate with USAID, echoing sentiments also heard at 
national-level meetings.  While the Governor outlined what the 
government is doing in support of wheat and cotton, he also 
highlighted the importance of USAID's work on family greenhouse 
plots and small dairy operations. 
 
SUPREME COUNCIL ASKS USAID'S SUPPORT FOR ACCOUNTING REFORM 
 
 
ASHGABAT 00000533  003.2 OF 003 
 
 
¶7.  (U) Following a presentation by USAID on April 22, the Deputy 
Chairwoman of the Supreme Council on Science and Technology (SCST) 
indicated her support for official approval for the USAID-developed 
Certified Accounting Practitioner (CAP) and Certified International 
Professional Accountant (CIPA) accounting training and certification 
program in Turkmenistan.  The Deputy Chairwoman prioritized building 
the capacity of Turkmen auditors, accountants and students through 
these internationally recognized standards and clearly recognized 
capacity-building as a cornerstone for implementation of 
International Financial Reporting Standards in Turkmenistan.  The 
Chairman asked for expanded USAID assistance in training of trainers 
and curriculum reform in Turkmenistan's universities and highlighted 
that the Council would move rapidly to fully approve the 
curriculum. 
 
¶8.  (SBU) COMMENT: The delegation's meetings with government 
officials were overwhelmingly positive.  Government counterparts 
showed a renewed interest in building international relations, in 
exploring international standards, and in learning about how 
Turkmenistan's development priorities can be achieved in the most 
effective manner.  Counterparts engaged in constructive and frank 
discussions, were appreciative of USAID's past assistance, and 
appeared interested in ensuring that USAID's programs operate 
smoothly.  This level of dialogue and cooperation would have been 
unthinkable only a year ago.  Even more impressive is the fact that 
the areas of cooperation -- educational reform, audits of state 
bodies, and regional energy market development -- have been 
sensitive to the state and therefore have received sparse USG 
support. 
 
¶9.  (SBU) COMMENT CONTINUED:  The increased interest and 
demonstrated actions from Turkmen counterparts provide numerous 
opportunities for engagement at this critical juncture.  Small 
amounts of technical assistance and training provided to the 
Government of Turkmenistan, combined with its substantial resources 
and broadening political interests, could have a dramatic impact in 
critical economic development areas.  Capacity-building that would 
support the introduction of International Financial Reporting 
Standards would have far reaching benefits for the financial system. 
 Assistance to support the government's stated intention to 
privatize state enterprises would improve transparency and the 
productivity of these firms.  Increased assistance in developing a 
regional electricity market would diversify sustainable exports of 
electricity to the region, including Afghanistan.  USAID has 
established relationships to support assistance in all of these 
areas but is hindered by limited budgets. 
 
¶10.  (SBU) COMMENT CONTINUED:  USG resources for the Economic Growth 
objective in Turkmenistan are an insignificant $879,000 in FY08. 
These are simply insufficient to take advantage of the near-term 
opportunities and needs outlined in this cable.  While FY09 budgets 
are a more robust $2,925,000, they will not be available for over 
another year.  The USG needs to immediately double the FY08 budget 
to be able to respond to GOT interests and build a relationship 
which has far-reaching potential across numerous strategic 
imperatives. 
END COMMENT. 
 
CURRAN