Identifier
Created
Classification
Origin
07ASHGABAT1244
2007-11-19 09:49:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:  

TURKMENISTAN FAVORS GENERAL ELECTRIC, DISTANCES

Tags:  PREL OGIV ECON ENRG EINV TK TX 
pdf how-to read a cable
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DE RUEHAH #1244 3230949
ZNR UUUUU ZZH
P 190949Z NOV 07 ZDK
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 9709
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE PRIORITY
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RHEFDIA/DIA WASHDC PRIORITY
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RHEHNSC/NSC WASHDC PRIORITY
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RUEHVEN/USMISSION USOSCE PRIORITY 1901
RUCNDT/USMISSION USUN NEW YORK PRIORITY 0626
UNCLAS ASHGABAT 001244 

SIPDIS

SENSITIVE
SIPDIS

STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN
DOE FOR EKIMOFF/THOMPSON

E.O. 12958: N/A
TAGS: PREL OGIV PREL ECON ENRG EINV TK TX
SUBJECT: TURKMENISTAN FAVORS GENERAL ELECTRIC, DISTANCES
ITSELF FROM CHALIK ENERGY

REF: A. ASHGABAT 1126

B. ASHGABAT 1014

UNCLAS ASHGABAT 001244

SIPDIS

SENSITIVE
SIPDIS

STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN
DOE FOR EKIMOFF/THOMPSON

E.O. 12958: N/A
TAGS: PREL OGIV PREL ECON ENRG EINV TK TX
SUBJECT: TURKMENISTAN FAVORS GENERAL ELECTRIC, DISTANCES
ITSELF FROM CHALIK ENERGY

REF: A. ASHGABAT 1126

B. ASHGABAT 1014


1. (U) Sensitive but unclassified. Not for public Internet.


2. (SBU) SUMMARY: President Berdimuhamedov wants General
Electric to participate in Turkmenistan,s energy sector but
without its current partner Chalik Energy, clear evidence
that the president is continuing to distance himself from
Ahmet Chalik, a favorite of former President Niyazov. END
SUMMARY.


3. (U) Charge met November 17 with General Electric
Infrastructure/Energy President for Central and Eastern
Europe, Russia, and the CIS Rod Christie and two of his
colleagues. They had just finished meeting with President
Berdimuhamedov and were waiting to see Deputy Prime Minister
for Oil and Gas Tagiyev. GE has been working in Turkmenistan
since 1995 and in partnership with Chalik Energy since 2001.


4. (SBU) Berdimuhamedov told Christie he wants GE

-- to start servicing directly the equipment it installed as
a sub-contractor to Chalik Energy and start providing spares
and replacement parts because, under Chalik Energy, it
hasn,t been properly maintained and serviced;

-- to establish a training program for Turkmenistanis so that
they learn how to take care of high-tech equipment;

-- to know Turkmenistan is placing high priority on
electricity generation, including solar energy, and
telecommunications; and

-- to have a direct relationship with the government of
Turkmenistan rather than work through partnership with
another company.


5. (SBU) Christie said the last point is significant because
it is clear evidence Berdimuhamedov wants to limit the role
of Chalik Energy in Turkmenistan (reftels). Christie
commented this is awkward because Chalik Energy has been a
good partner, but he will be fully transparent with Ahmet
Chalik, who, in any case, already knows the score and is
working to diversify into Russia.


6. (SBU) Christie said GE is participating in the tender for
two major gas turbines for electricity production near
Ashgabat, and will submit proposals for a similar project at
Turkmenbashy and its neighboring Avaza Free Tourist Zone. GE
will also consider Berdimuhamedov,s request for solar-power
generation at Avaza. Christie commented solar power is
becoming "fashionable" in Central Asia, even though it,s
hugely expensive.


7. (SBU) COMMENT: This is good news for General Electric,
bad news for Chalik Energy. The Turkish parent company
Chalik Holding has had three branches in Turkmenistan:
Chalik Textiles, Chalik Construction, and Chalik Energy.
Only Chalik Textiles has so far not suffered a sharp decline.
Berdimuhamedov is continuing to distance himself from Chalik
Holding CEO Ahmet Chalik, who was a favorite confidante of
former President Niyazov. END COMMENT.
HOAGLAND