TURKMENISTAN: PRESIDENT REITERATES IMPORTANCE OF RURAL

UNCLAS SECTION 01 OF 02 ASHGABAT 000201

SIPDIS

SENSITIVE
SIPDIS

STATE FOR SCA/CEN

E.O. 12958: N/A
TAGS: PGOV EAGR ECON SOCI TX

SUBJECT: TURKMENISTAN: PRESIDENT REITERATES IMPORTANCE OF RURAL
DEVELOPMENT

REF: ASHGABAT 0181


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


2. (SBU) SUMMARY: At his February 2 Cabinet of Ministers meeting,
President Berdimuhamedov reiterated his determination to improve
life in Turkmenistan's remote rural regions, requiring relevant
cabinet members to report on progress to date in implementing the
rural development plan. The president returned decision-making
responsibility (but not budget-approving authority) for rural
development to the provincial governments and urged more
coordination between the central and regional governments in
identifying and delivering the needs of people on the periphery.
This is a significant reversal of the decision last July to move
budget and decision-making authority to the center, and -- while
probably motivated by the president's frustration at the slow pace
of implementation -- it has the collateral result of promoting
greater local self-governance. END SUMMARY.

NATIONAL PROGRAM


3. (SBU) During an extended meeting of the Cabinet of Ministers on
February 2, the president focused largely on his new "National
Program of Reform of Social/Living Conditions of Populations of
Villages, Towns, Cities, Districts, and District Centers through
2020." (NOTE: This program is directed toward improving social
and living conditions in Turkmenistan's marginalized rural areas.
END NOTE.) As program chairman, Berdimuhamedov ordered his
ministers and regional governors to identify strategies and actions
how to improve rural living as a team. He said that "as a president
elected by people, I will not let anyone hinder the realization of
this program." Berdimuhamedov urged municipal leaders to submit
proposals for the construction of schools, kindergartens, and
hospitals in their respective districts and provinces and urged all
cabinet members to work harder to attract foreign construction
companies to build these facilities.

CONCRETE PROJECTS AND $$$


4. (SBU) Five ministers reported on their agencies' plans to
promote rural development:

-- Minister of Construction and Construction Materials Shamuhammet
Durdyliyev reported that 41% of the capital investment for social
development and improvement of engineering infrastructure was
allocated to his ministry. The Ministry will use this capital to
construct a total of 365,000 square meters of housing in rural areas
in 2008.

-- Minister of Energy and Industry Gurbannur Annaveliyev reported
that the government allocated 11,184.7 billion manats (approximately
$1.86 million at the official exchange rate) for construction of new
power transmission lines and refurbishment of existing lines. The
Ministry plans to spend 1,035.4 billion manats ($173,000) in 2008.

-- Chairman of "TurkmenAvtoYallary" (Turkmen Motor Roads) Ashyr
Sarybayev discussed upcoming road construction projects. This state
concern will build and reconstruct roads and highways of a total
length of 1,841 kilometers. Plans for these roads include green
zones, street lights, and bus stops. (NOTE: The head of the
district division of this company said that a hefty 17 billion
manats (about $2.8 million) had been allocated for his district in
Dashoguz province. END NOTE.)

-- Chairman of TurkmenGaz (Turkmen Gas) Yagshygeldi Kakayev reported
the state concern's plans to lay 12,806.2 kilometers of gas
pipelines in rural areas. TurkmenGaz plans to lay 9,337.5
kilometers of pipelines by 2010. In addition, Kakayev indicated,
TurkmenGaz has already purchased $39.6 million worth of pipes.

-- Minister of Communications Resulberdi Hojagurbanov reported the
government allocated almost 300 billion manats (about $50 million)
to his ministry for high-quality communications systems, including

ASHGABAT 00000201 002 OF 002


television and radio broadcasting.

DECREES GIVE PROVINCES DECISION-MAKING RESPONSIBILITY


5. (SBU) President Berdimuhamedov, who is also the Chairman of the
Halk Maslahaty (People's Council),signed decrees upgrading the
status of Ashgabat's Archabil district; the municipalities of Tejen,
Serdar, and Kunya Urgench; and the settlements of Anau, Baharly,
Geokdepe, and Gazachak. Under these decrees, these upgraded
settlements and municipalities will have the same government
structures as cities. Berdumuhamedov also signed decrees splitting
the Ministry of Economy and Finance into two separate ministries --
a Ministry of Finance and a Ministry of Economy and Development
(reftel) -- and giving decision-making responsibility (but not
budget-approving authority) back to the provincial governments for
construction, new roads, and laying of gas pipelines and electrical
lines within their provinces. (COMMENT: This is a significant
reversal of the decision last July to move budget and
decision-making authority from provincial governments to the Center.
END COMMENT.)


6. (SBU) COMMENT: For Turkmenistan's rural citizens, who were badly
neglected under President Niyazov, Berdimuhamedov's new program
represents a sign of consideration, respect, and fair treatment.
While Berdimuhamedov has put rural development high on his list of
priorities, he has been growing increasingly impatient with the slow
pace of implementation. It was probably this frustration, more than
any other consideration, that led to his decision to return
decision-making authority to the provincial governments. However,
by giving more power to local authorities, who now can draft their
own budgets based on local needs, and provide those budgets for
consideration to central authorities, this move reflects a positive
step forward in empowering local self-governance. END COMMENT.

HOAGLAND