VZCZCXRO5275
RR RUEHAG RUEHAST RUEHBI RUEHCI RUEHDF RUEHIK RUEHLH RUEHLN RUEHLZ
RUEHNEH RUEHPW RUEHROV RUEHSK RUEHSR RUEHVK RUEHYG
DE RUEHAH #0040/01 0130558
ZNR UUUUU ZZH
R 130558Z JAN 09
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC 2098
INFO RUCNCIS/CIS COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RHMFIUU/CDR USCENTCOM MACDILL AFB FL
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RHEHNSC/NSC WASHDC
RUEHVEN/USMISSION USOSCE 3201
RUEKJCS/JOINT STAFF WASHDC
RUEKJCS/SECDEF WASHDC

UNCLAS SECTION 01 OF 02 ASHGABAT 000040 
 
SENSITIVE 
 
SIPDIS 
 
STATE FOR SCA/CEN, EUR/ACE, EEB 
AID/W FOR EE/EA 
 
E.O. 12958: N/A 
TAGS: PGOV PREL EAID TX
SUBJECT: TURKMENISTAN: ECONOMIC POLICY PROJECT RECEIVES LETTER OF 
APPRECIATION FROM CABINET OF MINISTERS 
 
REF: (A) 08 ASHGABAT 1253  (B) 08 ASHGABAT 1227 
 
¶1.  (U) Sensitive but unclassified.  Not for public Internet. 
 
¶2. (SBU) SUMMARY:  On January 6, 2009, the Country Coordinator of 
USAID's implementing partner for its Economic Reform to Enhance 
Competitiveness (EREC) project, BearingPoint, received an e-mail 
from Turkmenistan's Cabinet of Ministers expressing gratitude for 
the project's work with the Institute for Strategic Planning and 
Economic Development (ISPED) to develop the Concept for Private 
Sector Development.  Since June 2008 the project brought several 
consultants that provided training and advice to ISPED staff on best 
practices in areas such as privatization, strategy development, and 
project management.  ISPED and the Cabinet of Ministers have 
separately expressed their desire to continue cooperation with 
USAID/EREC as specific elements of the program are implemented once 
the concept note is approved by the Cabinet of Minsters. 
Regrettably, if additional funds are not allocated USAID will have 
to drop its engagement with ISPED and potentially slow the progress 
of ongoing economic reforms in Turkmenistan. END SUMMARY. 
 
¶3. (SBU) The full text of the message sent via e-mail on January 6 
by Nurgeldi Meredov (please protect), Economic Development 
Department in the Cabinet of Ministers of Turkmenistan, to 
USAID/BearingPoint's, Wepa Myalikguliyev, is as follows: 
 
QUOTE 
Dear Wepa, 
 
Happy New Year! We wish you further success in your professional 
life and health and happiness in your family life. 
 
We appreciate USAID/EREC Project's cooperation and support it has 
devoted for the development of the Concept of supporting and 
developing entrepreneurship in Turkmenistan. You will receive a copy 
of the final version of the Concept around the beginning of February 
¶2009. 
 
We, as the Economic Development Department of the Cabinet of 
Ministers of Turkmenistan, regulate ministries and agencies that are 
related to Socio-economic development planning, designing industry 
development and competitiveness strategies and the management of 
fiscal and monetary policies. We are aware of all your cooperation 
with such ministries and agencies and are looking forward to your 
further successful work with them including the design of the 
Entrepreneurship support Program in Turkmenistan. 
 
Best regards 
END QUOTE 
 
¶3.  (U) Since beginning its work in Turkmenistan earlier in 2008, 
USAID's Economic Reform to Enhance Competitiveness (EREC) project 
has worked in three main directions in Turkmenistan (ref A).  First, 
since June 2008 it brought several consultants that have provided 
training and advice to ISPED staff on best practices in areas such 
as privatization, strategy development, and project management. 
Next, beginning in October 2008, the SRC hosted a Public Sector 
Audit and Accounting Advisor for six weeks that provided assistance 
in areas identified by the Chamber, such as training on audit 
standards, financial audits, and performance audits; an assessment 
of the Chamber; and, from this assessment, prepared a development 
plan.  Finally, the EREC project recently assumed responsibility for 
USAID's long-standing work in the accounting sector, and has already 
established new cooperation with the Supreme Council on Science and 
Technology under the President of Turkmenistan to prepare university 
lecturers to introduce the principles of International Financial 
Reporting Standards (IFRS) into higher education intitutions' 
curriculum (ref B). 
 
¶4.  (SBU) COMMENT: Technical assistance opportunities in 
Turkmenistan's economic sector have been very limited in recent 
years.  This situation appears to be slowly changing due in part to 
the strong relations that USAID's partners have been able develop 
with new institutions like the Institute for Strategic Planning and 
Economic Development (ISPED), the Supreme Regulatory Chamber, and 
the Supreme Council on Science and Technology.  BearingPoint's 
Myalikguliyev, a former Embassy Ashgabat FSN, is a good example, and 
 
ASHGABAT 00000040  002 OF 002 
 
 
the positive feedback he received from the Cabinet of Ministers is 
unprecedented. 
 
¶5.  (SBU) COMMENT CONTINUED:  Increased funding is necessary in 
order to capitalize on these opportunities, each of which support 
the stated USG priority of promoting introduction of basic market 
reforms to move Turkmenistan toward greater integration with the 
region.  Current FY09 funding levels, however, will compel USAID to 
drop its engagement with ISPED and potentially slow the progress of 
ongoing economic reforms in Turkmenistan. END COMMENT. 
 
MILES