Identifier
Created
Classification
Origin
08ASHGABAT513
2008-04-24 13:50:00
CONFIDENTIAL
Embassy Ashgabat
Cable title:  

TURKMENISTAN: TURKISH CONSTRUCTION COMPANY

Tags:  PREL ECON TX 
pdf how-to read a cable
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DE RUEHAH #0513/01 1151350
ZNY CCCCC ZZH
P 241350Z APR 08
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 0666
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUCNCIS/CIS COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHAK/AMEMBASSY ANKARA 3677
RUEHBJ/AMEMBASSY BEIJING 1495
RUEHKO/AMEMBASSY TOKYO 1362
RUEHIT/AMCONSUL ISTANBUL 1931
RUEATRS/DEPT OF TREASURY WASHDC
RHEHNSC/NSC WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RHMFISS/CDR USCENTCOM MACDILL AFB FL
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RUEKJCS/JOINT STAFF WASHDC
RUEKJCS/SECDEF WASHINGTON DC
RUEHVEN/USMISSION USOSCE 2450
C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 000513 

SIPDIS

SIPDIS

STATE FOR SCA/CEN, EEB

E.O. 12958: DECL: 07/20/2018
TAGS: PREL ECON TX
SUBJECT: TURKMENISTAN: TURKISH CONSTRUCTION COMPANY
PROTECTS ITS BUSINESS

REF: A. 07 ASHGABAT 0968


B. ASHGABAT 483

Classified By: CDA Sylvia Reed Curran for reasons 1.4 (B) and (D).

C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 000513

SIPDIS

SIPDIS

STATE FOR SCA/CEN, EEB

E.O. 12958: DECL: 07/20/2018
TAGS: PREL ECON TX
SUBJECT: TURKMENISTAN: TURKISH CONSTRUCTION COMPANY
PROTECTS ITS BUSINESS

REF: A. 07 ASHGABAT 0968


B. ASHGABAT 483

Classified By: CDA Sylvia Reed Curran for reasons 1.4 (B) and (D).


1. (C) SUMMARY: Selakhattin Yetim (please strictly protect
throughout),Deputy General Director of the third-largest
Turkish construction company in Turkmenistan, Sehil Inshaat,
said that President Berdimuhamedov was justified in his
comments criticizing the work of some Turkish construction
companies in Turkmenistan. Yetim said that some of these
companies, especially the smaller ones, are completing
projects well after the deadline, and the president wanted to
warn them that Turkmenistan expected adherence to deadlines
as well as well-constructed buildings. Companies like Sehil
sometimes invest in government pet projects of questionable
worth, like Avaza, because they believe it protects their
significant volume of business in Turkmenistan. END SUMMARY.

MEETING WAS A WARNING TO FINISH ON TIME, AND TO CONSTRUCT
QUALITY BUILDINGS


2. (C) Selakhattin Yetim said in a meeting with EconOff on
April 24 that President Berdimuhamedov did not speak harshly
at the April 14 meeting with construction companies (septel).
Yetim explained that Berdimuhamedov had recently discussed
Turkish businesses active in Turkmenistan when he met with
Turkey's President Gul. Yetim insisted that the intention of
this "town hall" on construction was to foster commerce
between Turkey and Turkmenistan. Yetim added that
Berdimuhamedov only meant to "warn" companies that he expects
them to complete work on time and to construct quality
buildings. "This is a normal request," Yetim said.
Furthermore, Yetim said, this was this president's first such
meeting with Turkish construction companies since taking
office in February 2007. Niyazov held many such meetings
during his tenure as president.

NO EXCUSE FOR CONSTRUCTION DELAYS


3. (C) Yetim explained that work in Turkmenistan's provinces
proceeds at a slower pace because companies must always
transport building materials to the sites. Nevertheless,
Yetim said, projects should be completed on time. Some
companies are not taking proper responsibility for their
work, and the president found out during his discussions with
President Gul that "the situation could be much better."

SMALL COMPANIES ARE NOT WORKING RESPONSIBLY


4. (C) When asked about the abnormally short deadlines
expected by Turkmen government officials, Yetim said that 90
percent of construction projects are not completed on time.
He insisted that a company was responsible for helping set a
reasonable deadline and defended the president's words,
saying that "some companies are not working seriously." He
added that some companies -- especially small ones -- are
bidding low on contracts in order to win tenders, without
having a plan to complete the work. He also pointed his
finger at companies that do not start work immediately,
claiming that some companies wait several months after
winning contracts before embarking on construction. He said
that Sehil starts work and preparing documents at the same
time, which is the only effective way to do business, because
waiting one day wastes a lot of time.

WITH 24 PROJECTS IN PROGRESS, SEHIL IS BUSY


5. (C) At the end of the meeting, Yetim discussed Sehil's 24
current projects in progress throughout Turkmenistan. The
company is building three five-star hotels, one children's
camp, and a motel/cottage site at Avaza (Ref. A) -- the first
two are government projects, and the last is Sehil's

ASHGABAT 00000513 002 OF 002


investment project. In the Ashgabat area, the company is
building a factory for metal bars used in construction,
several 12-story apartment buildings, a shopping center, and
a recycling plant. The company is also working on various
projects for the Ministry of Culture including three
apartment buildings, a music school, a kindergarten, a high
school, and an institute of culture. In Dashoguz, they plan
to build a water treatment plant and concert hall seating
2,800 people. In Mary, they will construct an Energy
Institute.


6. (C) COMMENT: Although the work of smaller Turkish firms
may questionable, it appears that larger Turkish construction
firms feel threatened by newer players, who they feel may be
stealing their business. Companies like Sehil know on which
side their bread is buttered, and top executives like Yetim
will never, ever criticize the president. On the contrary --
Sehil is even investing in the hopeless Avaza project, a
gesture which can be likened to Polimeks' birthday gift of
the world's tallest flag pole to President Berdimuhamedov
(Ref. B). END COMMENT.
CURRAN