TURKMENISTAN: "AVAZA INTERNATIONAL TOURIST ZONE" ANOTHER

UNCLAS SECTION 01 OF 02 ASHGABAT 000970 SIPDIS SENSITIVE SIPDIS STATE FOR SCA/CEN, EEB PLEASE PASS TO USTDA DAN STEIN E.O. 12598: N/A TAGS: PGOV ECON EINV TX SUBJECT: TURKMENISTAN: "AVAZA INTERNATIONAL TOURIST ZONE" ANOTHER BACK-TO-THE-SOVIET-FUTURE FOLLY REF: ASHGABAT 0968 ¶1. (U) Sensitive but unclassified. Not for public Internet. ¶2. (SBU) During a September 11 meeting with Mayor of Turkmenbashy Ashyrniyaz Pomanov, Charge asked him about the "Avaza International Tourist Zone" on the Caspian Sea that President Berdimuhamedov had announced with great fanfare on July 21 with the promise of $1B government seed-money "investment" to attract greater foreign investment [reftel]. Although very reserved and cautious, Pomanov let slip that Avaza is really a project former President Niyazov initiated. The mayor had a large rendering of the massive project propped against the wall in his office, which he somewhat sheepishly acknowledged was still very much "in the concept stage" since "the president's wish had required us to act extremely quickly." ¶3. (SBU) Pomanov said Turkmenistan had studied the tourist zones of Dubai, Capetown, Singapore, Antaliya, and Las Vegas to learn from their experiences. President Berdimuhamedov decided, after the first rendering of the project, he wanted an artificial "sea-water canal" to wind through the project. The French construction firm Bouyges, already entrenched in Turkmenistan, had responded that they would gladly design a "Paris" and "Venice" for the canal "like in Las Vegas." ¶4. (SBU) Pomanov pointed out five "hotels" concretely planned or already under construction by Turkish construction companies - three would be for subsidized vacations for the workers and their families of specific ministries, one would be a "medicinal sanitarium," and one would be used as a summer camp for workers' children. ¶5. (SBU) When asked about extravagant architectural sketches in the rendering, including a Dubai-like artificial island and causeway, Pomanov admitted those were "only in the concept stage" but could perhaps become entertainment zones, including casinos, grand restaurants, theaters, amusement parks, and also maybe "commercial centers," the term for office buildings. The rendering included about 50-75 separate villas, which Pomanov said would be available for various ministries. The project would also have its own purpose-built utilities, fire department, and "possibly a model refinery for tourists to visit." ¶6. (SBU) When asked if any international hotel chains or other international tourist-industry businesses had expressed interest in the project, Pomanov insisted "more than 60" businesses had participated in the president's original presentation of the project, but, so far, the only international interest had come from French and Turkish construction firms and a few Russian companies. Other potential investors, so far, are Turkmenistani ministries and state enterprises. ¶7. (SBU) Pomanov said that the Ministry of Sports and Tourism has responsibility for reviewing and approving proposals for the project and has already developed a plan for how the government will distribute the profits. Profits are expected to come from taxes, customs duties, and visa fees, he said. ¶8. (SBU) COMMENT: With Turkmenistan's top-down command-economy mentality circa Soviet Union 1975, it is inconceivable this fantasy project will ever develop into an international tourist destination. Certainly, something will be built, because the Turkish and French construction companies will be only too glad to suck again at the Government of Turkmenistan's cash-cow teat. ¶10. (SBU) COMMENT CONTINUED: The city of Turkmenbashy itself is a small (population c. 80,000),run-down provincial Soviet town. The only evidence of any modern development so far is a white-marble "Ruhnama Palace" and the decent Turkish-built Turkmenbashy Hotel (outside the proposed tourist zone). The airport terminal is a nightmare, although the president has promised a new one. Although the town was founded as Krasnovodsk in 1869, and once had a number of handsome and substantial 19th-century Russian Empire buildings, former President Niyazov ordered the majority of those historic buildings bulldozed to erase the Russian heritage. Should a handful ASHGABAT 00000970 002 OF 002 of international tourists ever haul up at the "Avaza International Tourist Zone," even if they could get visas and shake their KGB shadows, they would be unlikely to wander into town to explore a "quaint Caspian Sea port," because it doesn't exist. END COMMENT. HOAGLAND