TADAZ CLAIMS POLLUTION HAS DECREASED

UNCLAS SECTION 01 OF 02 DUSHANBE 000275

SIPDIS

SENSITIVE
SIPDIS

STATE FOR SCA/CEN, G
EMBASSY TASHKENT FOR EVELYNN PUTNAM

E.O. 12958: N/A
TAGS: PGOV PREL ECON EIND ETRD SENV RS TI
SUBJECT: TADAZ CLAIMS POLLUTION HAS DECREASED


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1. (U) SUMMARY: Central Asia's Regional Environment, Science,
Technology and Health Officer (REO) and PolOff visited the
Tajikistan Aluminum (TadAZ) plant in Tursun-Zoda near the
Uzbekistan border February 9. Uzbekistan blames the Tajik
government for allowing TadAZ to pollute the environment, which
affects Uzbek towns just across the border. TadAZ officials
claimed air and water pollution from the plant has decreased
tremendously and painted a rosy picture of an ideal company
town. END SUMMARY.


2. (U) Rustam Latifov, current deputy chairman of the State
Committee for Environmental Protection (SCEP),explained one
reason for the friction between the Uzbek and Tajik governments
on pollution issues is each country has different methodology,
standards and statistics for measuring pollution. Latifov added
that the Uzbeks pollute more than the Tajiks. According to
Tajik standards, the TadAZ pollution levels are acceptable.


3. (U) TadAZ has its own Department for Environmental
Protection, headed by Nurali Kadirov. TadAZ lab tests of the
water and air quality show pollution declining since the
nineties. A possible reason for the decline is that in 1992 and
1997 TadAZ installed $16 million worth of pollution prevention
technology from Norway. According to TadAZ environmental
officials, a TadAZ scientist patented a process he developed to
recycle aluminum waste into other products. Last year TadAZ
produced 380,000 tons of aluminum and also 15,000 tons of
aluminum waste. TadAZ officials would not give PolOffs copies
of their assessment, explaining that the document had sensitive
commercial information as well. Their assessment was derived
from the work of three laboratories in Tajikistan. The SCEP has
a laboratory in Dushanbe and TadAZ has two laboratories equipped
with Soviet-era equipment-one at their plant facilities and one
in a suburb of Tursun-Zoda.


4. (U) Most of TadAZ's newer equipment and technology comes
from Russia, although the original equipment is early 1970s
French. TadAZ officials mentioned that RusAl is considering
modernizing the plant. When asked about RusAl's relationship
with the plant, TadAZ officials would not comment. They said
their role as environmental monitors prevented them from knowing
whom their clients or suppliers are and said TadAZ processes raw
materials brought from an intermediary who also sells their
products. (Note: Although they did not come out and directly
say it, the intermediary is a Russian company.)


5. (U) TadAZ is the largest employer in the city and like
other large Soviet company towns, continues to provide services
to its workers. In 2000, TadAZ built a hospital where employees
and their families can seek free medical treatment. City
residents can also go to the hospital for a negotiated, but
nominal fee. In addition, TadAZ has also set up a "green zone"
where they planted trees. TadAZ officials noted that not only
does the park benefit the community; the plant life is also used
as an indicator of pollution. "If the trees are alive and well,
then there is no pollution problem."


6. (U) Factory workers, according to Kadirov, can earn up to
$300/month depending on how much they produce. EmbOffs were
permitted to walk right up to the machines and aluminum
production sites. Few safety measures were seen. All employees
wore helmets, but none had on masks to prevent inhaling the
metallic dust and chemical fumes swirling around the plant.


7. (U) The meeting with TadAZ was originally scheduled just
between EmbOffs and TadAZ officials. The day before, Latifov
requested to participate, and during the meetings answered most
of EmbOffs' questions. Latifov often sided with the TadAZ

DUSHANBE 00000275 002.2 OF 002


Department on Environmental Protection's responses on
environmental issues. Their common stance was an inherent
conflict of interest exists between businesses and the
environment, and businesses naturally act in their own interest.
In a private comment, Latifov sounded surprised by the notion
gaining currency in U.S. environmental circles that the cost of
a product should include its environmental effects.



8. (SBU) COMMENT: The state-owned TadAZ provides Tajikistan,
along with cotton, significant export earnings and plays a
critical role in the weak economy. Officials are unlikely to be
overly concerned with environmental impact, particularly if it
occurs on the other side of the border. SCEP is in no position
to act as a watchdog, particularly given the fact that much of
TadAZ's aluminum is likely controlled by the giant RusAl. The
question of TadAZ pollution is also geopolitical. RusAl's
Deripaska, seeking investment in Uzbekistan, seems to have
bought, at least in part, the Uzbek complaints about TadAZ
pollution, much to Tajik officials' annoyance. Given the
quality of the lab and equipment that EmbOffs saw, as well the
fact that TadAZ's labs are company-owned, TadAZ's results are
questionable and its evaluation of its environmental impact
cannot be taken at face value.


9. (SBU) BIO NOTE: Latifov, a former deputy chairman at the
State Committee for Environmental Protection, was recently
dismissed and most likely will be promoted to a post in a new
regional water commission. His brother, Oumed Latifov, is AES
Director for Energy Development in Central and South Asia. END
COMMENT.
HOAGLAND