Identifier
Created
Classification
Origin
07ASHGABAT970
2007-09-13 11:54:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:  

TURKMENISTAN: "AVAZA INTERNATIONAL TOURIST ZONE" ANOTHER

Tags:  PGOV ECON EINV TX 
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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

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

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