Identifier
Created
Classification
Origin
08ASHGABAT1377
2008-10-20 13:41:00
CONFIDENTIAL
Embassy Ashgabat
Cable title:
NEW TURKISH CONSTRUCTION COMPANY OPENS SHOP IN
how-toVZCZCXRO9554 PP RUEHAG RUEHBI RUEHCI RUEHLH RUEHPW RUEHROV DE RUEHAH #1377/01 2941341 ZNY CCCCC ZZH P 201341Z OCT 08 FM AMEMBASSY ASHGABAT TO RUEHC/SECSTATE WASHDC PRIORITY 1729 INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE RUCNCIS/CIS COLLECTIVE RUCNMEM/EU MEMBER STATES COLLECTIVE RUEHAK/AMEMBASSY ANKARA 4417 RUEHBJ/AMEMBASSY BEIJING 2229 RUEHKO/AMEMBASSY TOKYO 2094 RUEHIT/AMCONSUL ISTANBUL 2665 RUCPDOC/DEPT OF COMMERCE WASHDC RHEHNSC/NSC WASHDC RUEATRS/DEPT OF TREASURY WASHDC RHMFISS/CDR USCENTCOM MACDILL AFB FL RUEAIIA/CIA WASHDC RHEFDIA/DIA WASHDC RUEKJCS/JOINT STAFF WASHDC RUEKJCS/SECDEF WASHINGTON DC RUEHVEN/USMISSION USOSCE 2986
C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 001377
SIPDIS
STATE FOR SCA/CEN, EEB
E.O. 12958: DECL: 10/20/2018
TAGS: ECON EINV EIND TX TU
SUBJECT: NEW TURKISH CONSTRUCTION COMPANY OPENS SHOP IN
TURKMENISTAN, WITH A DEAL IN HAND
REF: A. ASHGABAT 514
B. ASHGABAT 483
Classified By: Charge d'Affaires a.i. Sylvia Reed Curran for reasons
C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 001377
SIPDIS
STATE FOR SCA/CEN, EEB
E.O. 12958: DECL: 10/20/2018
TAGS: ECON EINV EIND TX TU
SUBJECT: NEW TURKISH CONSTRUCTION COMPANY OPENS SHOP IN
TURKMENISTAN, WITH A DEAL IN HAND
REF: A. ASHGABAT 514
B. ASHGABAT 483
Classified By: Charge d'Affaires a.i. Sylvia Reed Curran for reasons 1.
4 (B) and (D).
1. (C) SUMMARY: Another Turkish construction company, Yapi
Taahhut Tasarim Inshaat ("Yapi"),has entered the
Turkmenistan market. Leading Yapi's Ashgabat office is a
young Turk who until recently worked at rival company
Polimeks and who brings with him significant experience in
Turkmenistan's construction business. Yapi is completing
work on a sanatorium that MACC Construction began. The
president publicly criticized MACC and several other small
Turkish construction firms in a public meeting in April.
Yapi is using international project management standards and
an international consulting firm on this project, tools not
used in Turkmen construction projects until now. The rewards
for good work can be significant -- this local manager has
been promised a yacht upon successful completion. END
SUMMARY.
INTRODUCTION TO YAPI
2. (C) Caner Demir (please protect throughout) worked until
recently for the busiest Turkish construction firm in
Turkmenistan, Polimeks. He was approached to join Yapi
Taahhut Tasarim Inshaat ("Procurement Design Construction")
by his friend who is the company's Kazakhstan general
manager. Demir said in a meeting on October 17 that Yapi, a
34-year-old company, has recently been working in Ukraine and
Russia in addition to Jordan. Demir, who is a minor partner
in the office, mentioned that the two major partners will
spend most of their time in Turkey. The company specializes
in construction of health and tourism facilities, business
and shopping centers, space used for educational and social
purposes, residential and infrastructure projects, energy
transfer lines, and telecommunication towers.
TAKING OVER THE ARCHMAN/VILI SUW PROJECT FROM MACC
3. (C) Yapi opened the Ashgabat office when the company
closed the deal for a resort/recreation center/spa, the
Archman Hydrotherapy Center and the "Vili Suw" unit. Archman
is located 130 kilometers away from Ashgabat, and the Vili
Suw ("hot water") unit is another 30 kilometers away. Yapi
aims to complete the Archman project by the beginning of
June. Demir said that the Minister of Healthcare and Medical
Industry asked Yapi to take over work already begun by MACC,
one of the smaller Turkish companies that the president
publicly rebuked in a meeting with Turkish construction
companies in April (Ref. A). According to Demir, MACC is no
longer working in Turkmenistan. The Islamic Development Bank
and the Organization of the Petroleum Exporting Countries are
financing the construction of these facilities, with a
smaller contribution from the Government of Turkmenistan.
Demir said that there is some discussion on the governmental
level about setting up some public transportation options to
the facilities, but he didn't know the details.
BRINGING INTERNATIONAL MANAGEMENT TOOLS TO TURKMEN
CONSTRUCTION
4. (C) Demir said that the Archman/Vili Suw project is the
only project in Turkmenistan to use an international
consultant -- Bangladesh Consultants Ltd. -- which will
guarantee an international standard. Yapi is also using the
International Federation of Consulting Engineers (FIDIC)
project management system. Because this is new in
Turkmenistan, Demir's Turkmen foremen who are experienced
with Turkish construction firms are learning this system and
therefore Demir said that the "(work) habits are a mixture of
FIDIC and Turkmen."
ASHGABAT 00001377 002 OF 002
5. (C) COMMENT: From appearances, Yapi is attempting to
raise construction and operational/management standards to a
European level. Demir made several comments about the chaos
that reigned at Polimeks, whose business plan operates on the
basis of giving gifts to the president -- fountains, the
world's largest flagpole, etc. -- each one more extravagant
than the last (Ref. B). However, when asked about some yacht
magazines on his desk, Demir said that the major partners in
the firm promised him one upon successful completion of the
project. END COMMENT.
CURRAN
SIPDIS
STATE FOR SCA/CEN, EEB
E.O. 12958: DECL: 10/20/2018
TAGS: ECON EINV EIND TX TU
SUBJECT: NEW TURKISH CONSTRUCTION COMPANY OPENS SHOP IN
TURKMENISTAN, WITH A DEAL IN HAND
REF: A. ASHGABAT 514
B. ASHGABAT 483
Classified By: Charge d'Affaires a.i. Sylvia Reed Curran for reasons 1.
4 (B) and (D).
1. (C) SUMMARY: Another Turkish construction company, Yapi
Taahhut Tasarim Inshaat ("Yapi"),has entered the
Turkmenistan market. Leading Yapi's Ashgabat office is a
young Turk who until recently worked at rival company
Polimeks and who brings with him significant experience in
Turkmenistan's construction business. Yapi is completing
work on a sanatorium that MACC Construction began. The
president publicly criticized MACC and several other small
Turkish construction firms in a public meeting in April.
Yapi is using international project management standards and
an international consulting firm on this project, tools not
used in Turkmen construction projects until now. The rewards
for good work can be significant -- this local manager has
been promised a yacht upon successful completion. END
SUMMARY.
INTRODUCTION TO YAPI
2. (C) Caner Demir (please protect throughout) worked until
recently for the busiest Turkish construction firm in
Turkmenistan, Polimeks. He was approached to join Yapi
Taahhut Tasarim Inshaat ("Procurement Design Construction")
by his friend who is the company's Kazakhstan general
manager. Demir said in a meeting on October 17 that Yapi, a
34-year-old company, has recently been working in Ukraine and
Russia in addition to Jordan. Demir, who is a minor partner
in the office, mentioned that the two major partners will
spend most of their time in Turkey. The company specializes
in construction of health and tourism facilities, business
and shopping centers, space used for educational and social
purposes, residential and infrastructure projects, energy
transfer lines, and telecommunication towers.
TAKING OVER THE ARCHMAN/VILI SUW PROJECT FROM MACC
3. (C) Yapi opened the Ashgabat office when the company
closed the deal for a resort/recreation center/spa, the
Archman Hydrotherapy Center and the "Vili Suw" unit. Archman
is located 130 kilometers away from Ashgabat, and the Vili
Suw ("hot water") unit is another 30 kilometers away. Yapi
aims to complete the Archman project by the beginning of
June. Demir said that the Minister of Healthcare and Medical
Industry asked Yapi to take over work already begun by MACC,
one of the smaller Turkish companies that the president
publicly rebuked in a meeting with Turkish construction
companies in April (Ref. A). According to Demir, MACC is no
longer working in Turkmenistan. The Islamic Development Bank
and the Organization of the Petroleum Exporting Countries are
financing the construction of these facilities, with a
smaller contribution from the Government of Turkmenistan.
Demir said that there is some discussion on the governmental
level about setting up some public transportation options to
the facilities, but he didn't know the details.
BRINGING INTERNATIONAL MANAGEMENT TOOLS TO TURKMEN
CONSTRUCTION
4. (C) Demir said that the Archman/Vili Suw project is the
only project in Turkmenistan to use an international
consultant -- Bangladesh Consultants Ltd. -- which will
guarantee an international standard. Yapi is also using the
International Federation of Consulting Engineers (FIDIC)
project management system. Because this is new in
Turkmenistan, Demir's Turkmen foremen who are experienced
with Turkish construction firms are learning this system and
therefore Demir said that the "(work) habits are a mixture of
FIDIC and Turkmen."
ASHGABAT 00001377 002 OF 002
5. (C) COMMENT: From appearances, Yapi is attempting to
raise construction and operational/management standards to a
European level. Demir made several comments about the chaos
that reigned at Polimeks, whose business plan operates on the
basis of giving gifts to the president -- fountains, the
world's largest flagpole, etc. -- each one more extravagant
than the last (Ref. B). However, when asked about some yacht
magazines on his desk, Demir said that the major partners in
the firm promised him one upon successful completion of the
project. END COMMENT.
CURRAN